Stock Markets May 26, 2026 05:24 AM

AST SpaceMobile Gains Ground as Carriers Back Satellite Direct-to-Device Plan

Regulatory approvals, an analyst upgrade and approaching satellite launches keep momentum alive for ASTS

By Caleb Monroe ASTS RKLB PL SPCX

AST SpaceMobile shares rose sharply in pre-market trading, driven by a coordinated industry move toward satellite-based direct-to-device connectivity and a string of company-specific developments. The entry of major carriers into a joint venture, an FCC nod for commercial services, a bullish analyst note, and upcoming satellite launches have all supported buying interest in the stock and the broader space sector.

AST SpaceMobile Gains Ground as Carriers Back Satellite Direct-to-Device Plan
ASTS RKLB PL SPCX

Key Points

  • Major U.S. carriers - AT&T, Verizon and T-Mobile - are forming a joint venture to deploy satellite-based direct-to-device technology, reinforcing demand for AST SpaceMobile’s offerings.
  • Regulatory and financial milestones have supported sentiment: the FCC approved AST SpaceMobile for commercial U.S. direct-to-device services, Roth Capital raised its price target to $108 and the company is reportedly funded for over 100 satellites with about $3.5 billion in cash.
  • Sector momentum and product flows are contributing to trading dynamics: space-focused names are rallying and two new leveraged ETFs offering 2x exposure to ASTS have launched, increasing trading activity.

AST SpaceMobile (ASTS) jumped 7.0% in pre-open trading today, continuing a multi-week advance after a major industry announcement and several company milestones reinforced investor optimism. The rally gathered strength as AT&T, Verizon and T-Mobile agreed to form a joint venture aimed at eliminating cellular "dead zones" by deploying satellite-based direct-to-device technology - the kind of capability AST SpaceMobile is developing.

Company leadership responded quickly to the carrier news. CEO Abel Avellan said the business intends to play a central role in the transition, adding that AST SpaceMobile will continue to expand its low Earth orbit network and increase the spectrum available to that network.

Regulatory progress has also supported market confidence. The Federal Communications Commission has approved AST SpaceMobile to offer commercial direct-to-device services in the U.S., a regulatory milestone that aligns with the company’s stated growth plans.

On the financial and analyst front, Roth Capital raised its price target on AST SpaceMobile from $82.50 to $108 and maintained a Buy rating. Roth highlighted that the company is fully funded to build more than 100 satellites and has approximately $3.5 billion in cash on hand.

Insider transactions have been limited and explained. The chief financial officer sold shares on May 20, 2026, primarily to cover expected tax liabilities. Market commentary characterized that sale as routine and not a material negative for investor sentiment.

Trading dynamics around ASTS have been affected by new financial products targeted at the name. Two leveraged exchange-traded funds - the Defiance Daily Target 2X Long ASTS ETF and the T-REX 2X Long ASTS Daily Target ETF - launched to provide magnified daily exposure to ASTS, which has amplified trading activity in the stock.

The uptick in AST SpaceMobile shares came as space-focused equities broadly rallied. The sector’s three largest pure-play names moved higher in tandem - ASTS up 7%, Rocket Lab (RKLB) rising 6%, and Planet Labs (PL) adding 4% - following a mid-week wobble in commercial space stocks. Commentators have noted that investor appetite for space names has picked up markedly in 2026, with space-focused ETFs and individual listings drawing increased interest amid significant attention on the planned SpaceX IPO.

Broader U.S. equity markets provided modest support to the move: the S&P 500 was up approximately 0.4%, the Dow Jones gained about 0.6% and the NASDAQ climbed roughly 0.2% during the same session.

Several company-specific details appear to be underpinning the buying pressure. AST SpaceMobile has reiterated a full-year 2026 revenue outlook in the range of $150 million to $200 million. Management has pointed to progress on FCC approvals, ongoing satellite deployment and more than $1.2 billion in contracted revenue commitments as validation of the business plan. Analysts and investors have cited those elements, together with the Roth upgrade and a rising market backdrop, as reasons for continued accumulation.

Looking ahead, the next near-term operational catalyst is the planned BlueBird 8, 9 and 10 launch on a Falcon 9 in mid-June. That mission is expected to move AST SpaceMobile closer to its target of about 45 satellites in orbit by the end of 2026.


Contextual note: Promotional tools and valuation calculators referenced in market commentary are used by some investors to assess whether ASTS may represent a bargain, but this report restricts itself to the company disclosures, analyst commentary and market moves described above.

Risks

  • Timing and execution risk tied to satellite deployment - the near-term launch of BlueBird 8, 9 and 10 in mid-June is a scheduled catalyst; delays or launch issues could affect the stock and the broader space sector.
  • Regulatory and commercialization uncertainty - while the FCC has approved AST SpaceMobile for U.S. commercial direct-to-device services, continued regulatory progress and service rollouts remain critical to achieving the company’s revenue targets.
  • Market and product-structure risks - the introduction of leveraged 2x ETFs can amplify volatility and trading volume in ASTS, which may increase short-term price swings for investors and impact liquidity.

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