Tech stocks are up off the mat today, thanks in large part to AST SpaceMobile Inc (NASDAQ:ASTS). The satellite designer and Starlink competitor inked a commercial agreement with Verizon Communications (VZ) for direct-to-device cellular service to customers beginning in 2026. In response, ASTS was last up 7.5% to trade at $80.35.
The new agreement with Verizon for space-based cellular broadband services adds another layer of legitimacy to AST SpaceMobile, which has been a successful but speculative name in the last year, and now could be a major player in providing nationwide internet coverage.
ASTS could today secure a seventh-straight gain, and is 284% higher on the year, after earlier hitting a record high of $91.41. Shares have now doubled off a Sept. 8 testing of their 126-day moving average.
There's massive contrarian potential still. Short interest added 5.5% in the most recent reporting period, and the 41.77 million shares sold short now account for 18.8% of the stock's total available float. BofA Global Securities hiked its price objective to $80 from $55 this morning, but six of 11 brokerages maintain "hold" ratings. This means there's room for upgrades.
Options traders are out in droves today. At last check, 137,000 calls and 76,000 puts have changed hands today, volume that's five times the average intraday amount. The weekly 10/10 90-strike call is the most active, with new positions being bought to open there.
