Stock Markets May 20, 2026 10:49 AM

AST SpaceMobile Shares Climb After Carriers Announce Joint Venture Tied to Satellite Coverage

Stock lifts on carrier partnership news, analyst upgrade and regulatory and technical milestones that underpin commercial direct-to-phone satellite service

By Hana Yamamoto ASTS T VZ TMUS

AST SpaceMobile shares rose intraday after AT&T, Verizon and T-Mobile revealed a joint venture to extend cellular coverage into so-called dead zones using satellite-based technology aligned with AST SpaceMobile’s offering. The company reacted positively, highlighted recent technical and regulatory progress, and received an analyst price-target increase as broader equity strength supported buying interest.

AST SpaceMobile Shares Climb After Carriers Announce Joint Venture Tied to Satellite Coverage
ASTS T VZ TMUS

Key Points

  • AST SpaceMobile stock rose 4.5% to $92.06 amid a multi-day rally tied to carriers forming a joint venture to expand satellite-enabled coverage into dead zones.
  • Roth Capital upgraded ASTS’s price target from $82.50 to $108 with a Buy rating, noting full funding for over 100 satellites and roughly $3.5 billion in cash despite Q1 timing misses.
  • Company milestones include a 98.9 Mbps direct-to-smartphone speed record, FCC Supplemental Coverage from Space authorization for up to 248 satellites, reaffirmed 2026 revenue guidance of $150M-$200M, and over $1.2B in contracted revenue commitments.

AST SpaceMobile shares moved higher in morning trading, gaining 4.5% to trade at $92.06 as the stock extended a multiday rally. The advance followed news that AT&T, Verizon and T-Mobile intend to form a joint venture aimed at expanding coverage into remote "dead zones" using the type of satellite connectivity that AST SpaceMobile develops.

The company offered an upbeat response to the carriers' announcement. Chief Executive Officer Abel Avellan said, "We plan to be a key enabler of this transformation as we continue to grow our global network in low Earth orbit and expand available spectrum to our network."

Analyst activity added to the constructive backdrop. Roth Capital raised its price target for AST SpaceMobile from $82.50 to $108 and maintained a Buy rating, noting that the company is fully funded for a fleet exceeding 100 satellites and holds about $3.5 billion in cash. The firm’s commentary came despite AST SpaceMobile reporting first-quarter results that missed consensus due to timing-related issues.

Several operational and regulatory milestones cited by the company also figured into investor sentiment. AST SpaceMobile reported a direct-to-smartphone throughput record of 98.9 Mbps and said it has received FCC Supplemental Coverage from Space authorization that permits commercial SpaceMobile service in the U.S. with up to 248 satellites. The company has also reiterated a full-year 2026 revenue forecast in the range of $150 million to $200 million and highlighted more than $1.2 billion in contracted revenue commitments.

Technical indicators have favored buyers as well. The stock registered a technical buy signal from a pivot bottom point on May 5, 2026, and has climbed sharply since that level, approaching an intraday high of $92.42.

Macro market conditions provided an accommodating environment for higher-beta names. U.S. equities were broadly firmer, with the S&P 500 up 0.6%, the Dow Jones Industrial Average gaining 0.6% and the NASDAQ advancing 0.9% during the same session. That risk-on tone benefited growth-oriented, volatile stocks such as AST SpaceMobile.

For AST SpaceMobile, the carriers’ joint venture offers a potential source of demand but also underscores execution scrutiny. The three wireless operators have indicated that direct-to-device satellite links should be incorporated as a shared, standards-based coverage layer - a construct that is consistent with AST SpaceMobile’s stated objective of connecting ordinary smartphones without additional user hardware.


Contextual takeaways

- The combination of a landmark carrier collaboration validating the relevance of satellite-based direct-to-phone links, the company’s reaffirmed 2026 revenue guidance, ongoing FCC milestones, material contracted revenue and a supportive analyst upgrade helped sustain buying pressure in the session.

- Those factors collectively propelled the stock toward its intraday high of $92.42.


Market implications

Investors tracking the wireless infrastructure and satellite connectivity segments will be watching how carrier coordination translates into procurement and standards decisions that could affect demand for satellite-to-handset services. In parallel, equity markets’ broader risk appetite influences flows into high-volatility technology and communications names.

Risks

  • Execution risk tied to translating the carriers’ joint venture into concrete procurement and standards adoption - this could influence demand for satellite-to-handset services and affects the communications sector.
  • Timing-related challenges highlighted in the company’s Q1 results that caused it to miss consensus - operational timing issues can affect revenue recognition and investor expectations across the satellite and telecom equipment sectors.
  • Regulatory and deployment limits despite recent FCC authorization, since the commercial service authorization is bounded by the up-to-248-satellite parameter and ongoing approvals and deployments will be required to realize scale.

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