ASTS Stock Loses Orbit As Investors Get Cold Feet Over CEO Pay Tied To Satellite Targets

• ASTS partially met its $75 million revenue milestone, reporting $70.9 million last year.
• However, targets to increase the number of satellites in orbit by early 2026 and expand satellite production were not met.
• Liquidity thresholds, spectrum-related deals, and funding milestones for constellation expansion were also achieved.

Shares of AST SpaceMobile (ASTS) slid to a four-month low on Tuesday as investors weighed a shareholder vote on CEO Abel Avellan’s milestone-based compensation tied partly to satellite deployment targets ahead of the company’s upcoming first-quarter results next month.

ASTS stock fell nearly 7% on Tuesday to hit $71.88, but pared some losses in extended trading. 

AST Seeks Approval For Performance-Based CEO Pay 

According to a fresh filing, AST Spacemobile is seeking shareholder approval of executive compensation disclosed for fiscal 2025, including equity awards granted to Avellan that were structured around operational milestones key to the company’s direct-to-smartphone satellite rollout strategy. 

The filing states that Avellan did not receive a base salary beyond minimum-wage requirements and also did not participate in the executive cash bonus program last year. Instead, his compensation consisted mainly of restricted stock units and performance-based stock units linked to execution targets.

Some of the performance metrics include hitting $75 million last year; the company reported revenue of $70.9 million, resulting in partial achievement of the objective. However, undisclosed targets to increase the number of satellites in orbit by early 2026 and expand the number of satellites built were not achieved.

Meanwhile, milestones related to maintaining liquidity thresholds, completing spectrum-related deals, and securing funding for constellation expansion were achieved. 

On the other hand, connectivity performance standards across satellites in operation were partially achieved, along with the implementation of satellite-to-smartphone capabilities and completion of regulatory and SEC-related filing milestones.

ASTS Q1 Preview

The filing comes as AST Spacemobile prepares to report its first-quarter (Q1) results on May 11. Fiscal AI estimates point to a sharp rise in revenue to $40 million, up from $3.25 million a year earlier. The company’s loss per share is expected to narrow to $0.17 from $0.21 a year ago, while losses before interest, taxes, depreciation and amortization (EBITDA) are projected to widen to $52.36 million from a loss of $39.21 million in the same period last year. 

Constellation progress remains a key investor focus after the BlueBird-7 anomaly during New Glenn Mission-3. AST SpaceMobile said the satellite separated and powered on as expected, but entered an orbit too low to sustain operations and is expected to de-orbit, with the spacecraft covered by insurance.

Production continues through BlueBird-32, with BlueBird-8 through BlueBird-10 expected to be ready for shipment soon, as the company maintains its target of placing 45 satellites in orbit this year.

Regulatory Factors Shaping ASTS Sentiment

Investor sentiment around ASTS has been influenced by regulatory developments following the Federal Communications Commission (FCC) 's recent dismissal of requests for expanded access to portions of the 1.5 GHz and 2 GHz bands. However, the regulator authorized deployment of 223 additional satellites and confirmed spectrum leasing arrangements with AT&T, Verizon, and FirstNet.

Following the regulatory developments, Rakuten Mobile sold about 5.1 million shares between April 17 and April 24 under a pre-arranged plan, reducing its stake to 21 million shares, or 7.2%, down from over 31 million shares previously.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS turned ‘bearish,’ slipping from ‘neutral’ levels a day ago amid a 71% jump in 24-hour chatter.

One user questioned, “So what happens when they announce they will not meet 45 sats by end of year.  Huge risk and not sure how much upside there is if they continue to launch only a few satellites.”

Another user said, “ASTS Q1 EARNING WILL SHOW POSITIVE STRONG GROWTH  FOR INVESTORS.”

ASTS stock has risen 72% over the past year. 

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