AST SpaceMobile $ASTS ( ▲ 7.07% ) got a lift after laying out plans to launch its first next-gen satellite next month, bringing the company one step closer to its dream of giving smartphones a cell signal from space. Yes, actual space.
The “internet from orbit” trade has been one of this year’s market darlings. Every time a company like AST SpaceMobile, EchoStar $SATS ( ▲ 3.34% ), Rocket Lab $RKLB ( ▲ 5.34% ), or Planet Labs $PL ( ▲ 3.41% ) announces a launch date or a fresh partnership, the stocks move like someone flicked on zero-gravity mode.
The newest satellite, Bluebird 6, is bigger than the last one, which means it can move more data and get AST closer to delivering real broadband straight to everyday phones. CEO Abel Avellan said the next generation of satellites will enable “ubiquitous cellular broadband coverage” from orbit, which is corporate speak for “your phone bars might one day come from the sky.”
The business case still has some gravity to overcome. AST SpaceMobile, along with Rocket Lab and Planet Labs, remains unprofitable and is expected to stay that way for a while. But in the space-to-smartphone race, the market is clearly rewarding progress over profits… for now.