It is said that a picture is worth a thousand words. Well, for satellite manufacturer AST SpaceMobile (ASTS), a picture has been worth more than $3 billion in additional market cap in just a few days. This happened after board member Adriana Cisneros posted a picture on Instagram with Amazon (AMZN) founder Jeff Bezos titled “Amazing things are happening at AST & Science + @blueorigin.”

This has led to intense speculation that Bezos, who is one of the world’s richest individuals, could become an investor in the company. At least that is what Scotiabank analyst Andres Coello expects when he said that, “Could Jeff Bezos become an ASTS investor? This is a possibility widely discussed by investors and analysts, in no small measure because Bezos is one of the world’s top space investors.”

About AST SpaceMobile

Founded in 2017, AST SpaceMobile is a satellite communications company pioneering the development of a space-based cellular broadband network that is accessible directly by standard mobile phones, eliminating the need for specialized hardware. The company aims to bridge the connectivity gap by providing global mobile broadband services through its satellite constellation.

Valued at a market cap of $9.1 billion, ASTS stock has soared by 45% on a YTD basis, with a nearly 33% gain in just the past five days. 

Space & Telecom: The Dual Drivers

A key aspect of synergy that may drive Bezos to invest in AST is its prowess in the space of well…. space.

AST’s first five BlueBird satellites, launched in September 2024, are now fully operational with planning and production for 40 Block 2 BlueBird satellites already underway. The company is also sourcing key components and materials for over 50 satellites, including fully assembled microns and phased arrays as it aims to produce six satellites per month in the second half of 2025.

Meanwhile, ASTS has secured launch capacity for about 60 satellites in 2025 and 2026. This includes five launches scheduled over the next six to nine months and the first Block 2 BlueBird satellites targeted for Q2. Once deployed, these satellites will support continuous service coverage in the U.S., Europe, and Japan.

Block 2 BlueBird satellites offer greater capacity and broader coverage. Their ability to deliver broadband to remote areas without requiring new devices for end-users gives ASTS a clear edge over competitors.

On the other hand, the company’s U.S. government business pipeline is also gaining traction and is expected to become a significant revenue stream. Notably, ASTS secured a $43 million contract with the Space Development Agency via a prime contractor. This deal follows successful in-orbit testing of its BlueWalker-3 satellite under a contract announced in February 2024. The current agreement is an evaluation phase that could lead to larger contracts, with revenue from this deal expected to flow in over the next 12 months.

Additionally, ASTS recently partnered with Singapore’s Defence Science and Technology Agency to provide connectivity for disaster relief and emergency response scenarios.

In the telecom sector, ASTS is advancing commercially. It has signed a long-term agreement with Vodafone (VOD) covering Europe and Africa, extending through 2034, with plans for jointly owned European distribution. The company also finalized an agreement with AT&T (T) and is working on a commercial partnership with Verizon (VZ). A beta service is slated for launch by year-end, with full commercial service expected in early 2026.

Notably, what gives ASTS a distinct advantage over legacy telecom players is its direct-to-device satellite broadband technology. Unlike conventional satellite phone services or new low-earth-orbit networks that require special equipment, ASTS’ system connects directly with standard smartphones. Once deployed, each AST SpaceMobile satellite uses its large phased-array antenna to communicate over regular cellular frequencies, transforming connectivity in underserved regions.

Finally, AST SpaceMobile’s solid moat of patents, hitting technical milestones, and forging key partnerships keeps it in good standing to become a significant enterprise in the critical dual realms of telecom and space.

Shaky Financials (Not a Cause of Worry Though)

ASTS is yet to be profitable and its numbers for the most recent quarter were disappointing as well.

Although revenues grew to $718,000 in Q1 2025 from $500,000 in the year-ago period, losses per share widened to $0.20 per share from $0.16 per share in the previous year. The losses also came in wider than the consensus estimate of a loss of $0.19 per share.

However, net cash used in operating activities narrowed to $28.5 million. This was $48.1 million in the prior year, which reflects that the company is seeing its cash outflow reducing, a positive sign. On an overall basis, AST’s liquidity position remained solid, as it ended the quarter with a cash balance of $874.5 million. This was considerably higher than its short-term debt levels of $5.5 million.

Moreover, the company’s enterprise value has grown by almost 13 times, from a mere $318.7 million in 2021 to $4.1 billion in 2024.

Thus, even though its remains unprofitable, its prudent balance sheet management combined with its continued innovation and technological advancements makes me confident that AST SpaceMobile is on the right path.

Analyst Opinions on ASTS Stock 

Taking all of this into account, analysts have deemed the ASTS stock a “Strong Buy” with a mean target price of $41.91. This denotes upside potential of about 37% from current levels. Out of eight analysts covering the stock, seven have a “Strong Buy” rating, and one has a “Hold” rating.