Space companies aren’t everybody’s cup of tea, but some investors might want to take a look at AST SpaceMobile (NASDAQ:ASTS) stock.
Now that the company has finally launched its BlueWalker 3 test satellite, ASTS stock might get the green light from Wall Street to move higher. Also, it’s encouraging to see that AST SpaceMobile’s financial situation is improving.
First things first. Some people might have the wrong idea about what AST SpaceMobile actually does. It doesn’t launch tourists into space. Rather, AST SpaceMobile seeks to deploy satellites in order to “bring broadband to approximately half of the world’s population.”
That’s an ambitious objective, and that’s why ASTS stock could be an all-or-nothing wager for investors. AST SpaceMobile might fail, but at least it would fail spectacularly – and if the company succeeds, the profit potential would be out of this world.
| ASTS | AST SpaceMobile | $7.62 |
What’s Happening with ASTS Stock?
AST SpaceMobile is a fairly small company with a market capitalization of around $1.38 million and a low share price. Hence, volatility is something that investors ought to expect.
Consider, for instance, that ASTS made a round trip from $7 to $14 and back during this year’s summer and early autumn. There does seem to be some support at $7, but no one can guarantee that any particular price level will hold.
It’s fun to consider that this stock may have multi-bagger potential – and perhaps this idea isn’t entirely unrealistic. First, though, AST SpaceMobile will have to demonstrate that its satellites are launch-ready.
Fortunately, the company appears to be making progress in this regard. AST SpaceMobile’s test satellite, BlueWalker 3, arrived at Florida’s Cape Canaveral in August. At the time, the company planned to launch it in early or mid-September.
Fast-forward to Sept. 13, and AST SpaceMobile finally launched BlueWalker 3 into space. AST SpaceMobile Chairman and CEO Abel Avellan stated, “A major achievement in our mission to connect the unconnected has been accomplished.”
AST Could Achieve Profitability Soon
Indeed, a major milestone was achieved on that day. Skeptical investors will still want to know, however, whether AST SpaceMobile is a financially stable business or not. So, let’s peek at the company’s top and bottom lines.
A Form 10-Q reveals that AST SpaceMobile grew its revenue from $2,773,000 in 2021’s second quarter to $7,264,000 in the second quarter of 2022. That’s an impressive revenue growth rate, to say the least.
Of course, running a groundbreaking business like AST SpaceMobile is costly, especially in the early stages. So, revenue growth won’t immediately result in profitability. Still, it’s encouraging to see that AST SpaceMobile shrank its net loss from $19,978,000 in Q2 2021 to just $2,924,000 in 2022’s second quarter.
What You Can Do Now
It’s hard to know whether profitability is just around the corner for AST SpaceMobile, but at least the company’s bottom line is headed in the right direction.
Furthermore, it’s exciting to witness AST SpaceMobile’s successful launch of BlueWalker 3. For some of you, this type of company may spark your interest. Just be sure to acknowledge the risks that are involved with this pioneering space company. With that in mind, feel free to consider a small position in ASTS stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.