AST SpaceMobile (NASDAQ: ASTS) has seen its shares plummet over 18% since July 15, falling nearly 60% from its all-time high on May 28. The Midland, Texas-based company is suffering from negative investor sentiment affecting the broader space sector, particularly after SpaceX (NASDAQ: SPCX) traded 42% below its post-IPO high, sparking concerns about capital-intensive tech stocks.
AST SpaceMobile is expected to spend roughly $3 billion this year and next, with positive free cash flow not anticipated until at least 2028. The company reported a Q1 net income contraction of over 292% year-over-year, despite revenue growth exceeding 1,952%. Its diluted EPS came in at negative 66 cents, significantly missing the negative 23-cent consensus, marking its worst performance since going public in April 2021.
Wall Street analysts maintain a cautious outlook, with AST SpaceMobile receiving a consensus Reduce rating. Currently, 21% short interest looms over the company, while inflows of $110 million in Q2 surpassed outflows of $1.77 million. The stock’s $87 consensus price target suggests a potential upside of approximately 58% from current levels.
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