AST SpaceMobile received a slew of analyst upgrades after the firm disclosed second-quarter results. Shares of the firm jumped over 41% on Thursday to all-time highs following the announcement.
The firm said its first five commercial satellites are on target for dedicated orbital launch in the first half of September and that it has secured FCC approval with initial license for the launch.
Meanwhile, the company stated that a strategic investment by Verizon has brought $100 million worth of financial commitment, that includes $65 million of commercial prepayments and $35 million of convertible notes. The company also signed a definitive commercial agreement with AT&T in May.
Following the announcement, B. Riley Securities reportedly maintained a ‘Buy’ rating on the stock while raising the price target to $26 from $15. UBS, too, maintained its ‘Buy’ rating on the stock while increasing the price target to $30 from $13.
Despite the positive updates, AST’s second-quarter earnings have disappointed retail investors. The company’s net loss attributable to common stockholders widened to $72.55 million from $18.41 million a year earlier, while revenue came in at $900,000. Retail sentiment on Stocktwits dipped into ‘extremely bearish’ territory (15/100) from ‘bearish’ a day ago.
Meanwhile, some Stocktwits users are expressing concerns about the dizzying rise in stock price, noting that the firm is still in its early stages.