Can Investing in AST SpaceMobile Stock Double Your Money?
2026-10-13 14:30
•David Jagielski, Cpa •The Motley Fool
•• • Axe Cap view
AST SpaceMobile: Too Early to Bet on a Space Telecom Win
Sky-high valuation and fierce competition leave AST SpaceMobile a risky play for now.
AST SpaceMobile's vision of delivering mobile connectivity via satellites is intriguing, but that promise comes with a hefty price tag—roughly $15 billion, against just $46 million in revenue in the first half of 2026. Trading at 150 times revenue, it’s a classic case of hopes vastly outpacing reality. The recent 50% share price drop reflects mounting worries over SpaceX’s rival Starlink network and AST's ongoing cash burn. For South African investors, this isn’t a straightforward story; there’s no direct local equivalent on the JSE, so your exposure is really through the dollar-rand cross. A sustained rally in USD/ZAR could amplify volatility in any USD-denominated tech bets like ASTS, but that doesn’t shift the fundamentals. This stock is a high-conviction gamble for those who believe space-based telecom is a future goldmine. Others should steer clear or watch for clearer signs of profitability and competitive edge. this is just our opinion and not financial advice
Avoid AST SpaceMobile for now due to its extreme valuation and competitive risks. If you want tech exposure, focus on more established players or keep an eye on USD/ZAR movements to gauge risk appetite.
- ASTS
- USD/ZAR
- Competition from SpaceX Starlink
- Continued cash burn without clear path to profitability
6/10
AST SpaceMobile stock has plummeted over 50% in six months amid competition concerns from SpaceX. While the company shows strong revenue growth ($46.3M in H1 2026) and has locked in agreements with 60 mobile operators, it remains unprofitable with a $15B market cap on minimal revenue. The stock trades at 150x trailing revenue, suggesting it may still be overvalued despite the selloff. Doubling from current levels is possible but unlikely in the near term for patient, risk-tolerant investors.
Our take is based on reporting first published by The Motley Fool.