Comparing ASTS and IBM: A Look at Today’s Top Connectivity Investment

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AST SpaceMobile Inc. (ASTS) has deployed its first five commercial satellites, known as Bluebird, in low Earth orbit (LEO), marking a significant step in creating a global cellular broadband network in space. The satellites feature the largest commercial communications arrays at 693 square feet and utilize over 5,600 cells in the low-band spectrum to provide intermittent service across the U.S. AST plans to launch 45 to 60 additional satellites by Q1 2026 to enhance connectivity in areas lacking terrestrial network coverage.

Meanwhile, International Business Machines Corporation (IBM) anticipates a 6.8% increase in sales for 2025, with earnings per share (EPS) expected to improve by 10.2%. IBM’s growth is bolstered by strong demand in hybrid cloud and artificial intelligence sectors, even as it faces competition from Amazon’s AWS and Microsoft’s Azure. The Zacks Consensus Estimate for ASTS indicates a staggering 1,142% sales growth, but a 60.6% decline in EPS, highlighting financial pressures on ASTS due to macroeconomic factors and competitive challenges.

Over the past year, ASTS has seen a 112.2% increase in stock price compared to the industry average of 12.5%, while IBM’s stock has surged by 31.5%. However, from a valuation perspective, IBM appears more attractive with a price/sales ratio of 3.97, significantly lower than AST’s 78.47. Both companies hold a Zacks Rank #3 (Hold), with IBM showing a more stable revenue trajectory amidst a complex market landscape.

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