AST SpaceMobile (NASDAQ: ASTS) hit an all-time high of $133.09 per share on May 28, 2026, but has since collapsed to around $66, wiping out roughly half its peak value.
The sharp decline has raised serious questions about whether the satellite communications company remains a viable long-term investment at current levels.
AST SpaceMobile operates in the low-earth orbit satellite space, building large LEO satellites designed to extend wireless coverage into remote areas beyond the reach of traditional ground-based towers.
Unlike SpaceX’s Starlink, which operates its own first-party satellite internet service, AST partners with major telecom carriers including AT&T and Verizon to supplement their existing wireless infrastructure.
AST’s BlueBird satellites are considerably larger than those deployed by Starlink, giving the company a distinct technical profile within an increasingly competitive orbital communications market.
The company has launched only seven satellites to date, though it has outlined plans to grow that constellation to between 45 and 60 satellites before the end of 2026.
Over the longer term, AST is targeting a constellation of up to 248 satellites, an expansion that analysts believe could drive revenue from $71 million in 2025 to $1.88 billion by 2028.
Analysts also project that the company will reach profitability in both 2027 and 2028, a forecast that fueled aggressive buying and pushed AST’s market capitalization to a peak of $39.7 billion, equivalent to roughly 21 times its projected 2028 revenue.
That stretched valuation proved difficult to sustain as inflation concerns, fears of interest rate hikes, and broader macroeconomic pressure pushed investors toward less speculative positions.
SpaceX’s record-setting IPO on June 12, which valued the company at $1.77 trillion, intensified the pressure by pulling investor attention and capital away from smaller space sector plays like AST.
The IPO had initially sparked wider enthusiasm for space stocks, briefly amplifying AST’s gains before the gravitational pull of the SpaceX listing redirected sentiment across the sector.
AST’s path to long-term value depends heavily on its ability to execute a complex and capital-intensive satellite deployment schedule while competing in a market now dominated by a newly public SpaceX.
Whether the stock’s current price represents a genuine entry point or a value trap will likely hinge on whether management can deliver on its ambitious constellation expansion targets within the timelines it has publicly committed to.
