AST SpaceMobile (ASTS) Soars on Bluebird Satellite Deployment: What Investors Need to Know
AST SpaceMobile (NASDAQ:ASTS) experienced a significant surge in its share price following the announcement of its commercial satellite deployment, known as Bluebird. This deployment will mark the largest-ever commercial communications array in low Earth orbit (LEO), with the primary goal of extending the reach of cellular broadband services. As a result, the credibility of ASTS stock is expected to receive a substantial boost.
According to a recent press release, the satellites are scheduled to be transported to Cape Canaveral in early August, with a targeted launch window in September. The company has completed rigorous testing of the satellites and will continue to monitor them until the launch date. While the exact launch date is dependent on various factors, including final testing results and regulatory approvals, momentum is moving in a positive direction.
AST SpaceMobile has secured investments from major telecommunications and technology companies, such as Verizon (NYSE:VZ) and Google under Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Additionally, the company has received a new contract award from the U.S. government through a prime contractor.
The broader interest in the space economy, which is estimated to be worth $1.8 trillion by 2035, according to a report by McKinsey & Company, has benefited ASTS stock. AST SpaceMobile aims to bridge the digital divide by providing cellular broadband services to users who are currently out of range from terrestrial coverage.
While the successful deployment of Bluebird is a significant achievement for ASTS stock, the company will need to launch between 45 to 60 commercial satellites to offer continuous coverage in the U.S. Nevertheless, AST SpaceMobile is making progress in the right direction, strengthening the case for investing in ASTS stock.
In conclusion, AST SpaceMobile’s Bluebird satellite deployment and its mission to bridge the digital divide by providing cellular broadband services to underserved areas have the potential to significantly impact the space economy and the telecommunications industry. Investors should keep an eye on ASTS stock as it continues to make strides in the satellite communications sector.