There's no doubt that investors often flock to the numbers at the top and the bottom of income statements when investigating companies. But it's often critical for investors to monitor other figures as well in order to gain insight.
Take, for example, AST SpaceMobile (NASDAQ: ASTS), which is working to build a space-based broadband cellular network. In fact, investors would be well advised to pay close attention to a number not even found in the company's financial statements.
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Targeting steady trips to the final frontier
Striving to provide global customers with unique broadband service, AST SpaceMobile is developing what it calls the "first and only space-based cellular broadband network." In order to develop this network, management projects it will deploy more than 60 satellites in 2025 and 2026 -- a feat that will provide continuous coverage to the company's key markets: the United States, Europe, and Japan, to name a few.
Since AST SpaceMobile's success depends on developing this constellation of satellites, investors should be acutely focused on commentary from the company confirming that it's on pace to achieve this deployment.
Another figure that investors can gauge for insight to the company's progress is the rate at which it's manufacturing satellites. Management forecasts achieving a production rate of six satellites monthly in the fourth quarter of 2025. Should the company fail to achieve this cadence, it may portend a failure to achieve the target of deploying 60 satellites by the end of 2026.
What's a space investor to do now?
Because it's still the early innings for AST SpaceMobile's development, investors won't gain as much insight into the company's operations combing through the income statement in the way they would for a more well-established company. Therefore, space investors will want to consult other metrics such as the number of satellites deployed and the rate at which satellites are manufactured.
As a young company that's not generating substantial and consistent revenue, AST SpaceMobile should only attract investors who aren't risk averse. For those comfortable with the risks, though, AST SpaceMobile is certainly worth watching closely.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.