Can ASTS Satellites Drive Future Defense Communication Growth?

AST SpaceMobile, Inc. (ASTS) satellites can support future defense needs by enabling direct satellite communication on regular mobile phones without special equipment. Its BlueBird LEO satellites provide wide coverage, helping defense forces stay connected in remote, maritime, or disaster-affected areas where networks fail. The surge in U.S. defense spending on hypersonics and rapid launch highlights the growing importance of space-based, resilient communication infrastructure.

AST SpaceMobile’s satellites can provide secure and reliable communications for troops, emergency responders, and logistics, even if ground networks are damaged. They can connect directly to regular smartphones, reducing the need for special satellite phones and making operations more flexible and scalable.

The U.S. government has awarded ASTS multiple defense and government contracts, showing that the satellite network is being integrated into military and government communications infrastructure to improve secure, resilient connectivity for defense users and first responders.

The global commercial space launch market is growing very fast as satellite operators want quicker launches and more flexible missions, with countries prioritizing space resilience and secure connectivity, making AST SpaceMobile’s satellite network a valuable supplementary communication layer for future defense needs.

How Are Other Competitors Performing?

AST SpaceMobile faces competition from Globalstar, Inc. (GSAT) and Viasat, Inc. (VSAT). Globalstar has partnered with SpaceX to launch new and replacement satellites on Falcon 9 rockets through 2026 as part of its network upgrade plan. Globalstar launched the RM200M, a two-way satellite IoT device that uses its LEO network to provide global connectivity.

Viasat builds and operates high-capacity communication satellites to provide global broadband, secure military communications, and connectivity for aircraft, ships, and remote locations. Viasat launched its next ViaSat-3 F2 satellite to expand global broadband and resilient satellite communications.

ASTS’ Price Performance, Valuation and Estimates

AST SpaceMobile shares have skyrocketed 291.7% over the past year compared with the industry’s growth of 24.4%.

From a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 122.6, well above the industry average.

The Zacks Consensus Estimate for AST SpaceMobile’s bottom line for 2025 has declined 8.16% to a loss of $1.06, while the estimate for 2026 has declined 8.8% to a loss of .74 cents over the past 60 days.

AST SpaceMobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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