AST SpaceMobile's 50% Pullback Is A Buying Opportunity, Says Clear Street Ahead Of Q2 Earnings

• The firm expects mobile carriers to increasingly adopt AST SpaceMobile’s technology.
• Wall Street expects AST SpaceMobile to report June-quarter revenue of $34.4 million, up sharply from $1.16 million a year earlier, according to Fiscal.ai.
• Short interest has climbed to 21.7%, the highest level since October 2024, according to Koyfin data.

AST SpaceMobile (ASTS) is attracting renewed attention after Clear Street recommended buying the stock, saying the stock’s roughly 50% pullback from its May peak was driven by temporary launch-related delays rather than weakening demand for its satellite-to-smartphone technology.

At the time of writing, ASTS stock edged 0.5% higher in pre-market trading and is on track for its first weekly gain in three weeks.

Clear Street Sees Increasing Adoption Of ASTS Technologies

Clear Street said the recent pullback has been driven by disruptions involving third-party launch vehicles, not by lost customer contracts or a slowdown in demand for direct-to-device satellite connectivity, according to The Fly.

The firm expects mobile carriers to increasingly adopt AST SpaceMobile’s technology as competition intensifies and operators look to retain subscribers by expanding coverage beyond traditional cellular networks.

Overall, Wall Street’s average 12-month price target stands at $83.32, implying more than 34% upside from current levels.

Partnerships To Drive Growth Momentum

The bullish outlook comes as AT&T CEO John Stankey said during the carrier’s second-quarter earnings call that its partnership with AST SpaceMobile is moving closer to a customer-ready product. The companies are developing a service that will allow standard, unmodified smartphones to connect directly to satellites when users move outside terrestrial cellular coverage.

AST SpaceMobile also recently secured regulatory approval to operate its SpaceMobile satellite constellation in Brazil through September 2039, covering up to 248 satellites. Earlier, the company received approval for spectrum leasing agreements with AT&T, Verizon, and FirstNet, enabling satellite-to-smartphone connectivity using portions of the 700 MHz and 800 MHz spectrum bands.

The company is also expanding its manufacturing footprint. Earlier this week, the Midland Development Corporation in Texas approved an agreement offering up to $66 million in performance-based incentives over 30 years to support a new 400,000-square-foot satellite manufacturing facility.

It also completed a $1 billion convertible senior notes offering, raising around $983.6 million in net proceeds to fund growth initiatives and secure additional launch capacity.

Wall Street’s Expectations Of ASTS’ Q2 Earnings

Wall Street expects AST SpaceMobile to report June-quarter revenue of $34.4 million, up sharply from $1.16 million a year earlier, while its loss per share is projected to narrow to $0.23 from $0.41, according to Fiscal.ai. The space stock is expected to report its second-quarter results next month.

Meanwhile, short interest has climbed to 21.7%, the highest level since October 2024, according to Koyfin data.

ASTS Sentiment Turns Neutral

Retail sentiment for ASTS on Stocktwits turned ‘neutral’ from ‘bullish’ a day earlier.

The stock has declined around 26% so far this year.

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