"Elon Musk, Are You Watching?"... Who Is the SpaceX Rival Whose Stock Soared 1300%

Low Earth Orbit Satellite Communication Company AST SpaceMobile
Launches First Commercial Satellite 'Bluebird' on 12th
Stock Price Rebounds 1300% Since April Low

AST SpaceMobile, a US space communication company challenging Elon Musk's SpaceX, will launch its first commercial satellite on the 12th (local time).

Bloomberg reported, "One of the most favored stocks by global investors this year is now trying to justify that enthusiasm and prove the skeptics wrong," highlighting AST SpaceMobile's satellite business plans.

On the same day, AST SpaceMobile will simultaneously launch five of its first commercial communication satellites, named 'BlueBird,' from the US Space Force base at Cape Canaveral, Florida. These satellites, about 65㎡ in size?comparable to a one-bedroom apartment?will be carried by SpaceX's Falcon 9 rocket. The launched satellites are planned to be operational by the end of this year, with a total of 100 satellites intended to provide low Earth orbit satellite internet services similar to SpaceX's Starlink.

[Image source=Reuters Yonhap News]

As Bloomberg reported, this satellite launch is expected to serve as a proving ground for the reasons behind AST SpaceMobile's stock rally. Previously, AST SpaceMobile boldly entered the low Earth orbit satellite communication market dominated by Starlink with its NASDAQ listing in 2021, but it failed to maintain investor attention for long. The stock price continuously plummeted, falling below $2 at one point in April.

Sam Adrangi, founder of KerysDale Capital Management, who shorted AST SpaceMobile stock, said, "There is no clear understanding of how their business model and ambitions can be realized economically," adding, "Even if this satellite launch succeeds, it is unclear who will be the ultimate winner in this market." He assessed that the space industry market, which requires enormous capital and technological capabilities but offers no guaranteed success, would be difficult for startups to endure.

However, the situation began to turn around rapidly one month after the stock price hit an all-time low. In May, by securing global communication giants AT&T and Verizon as allies, AST SpaceMobile gained the ability to provide wireless services across the United States through their 850MHz band frequency. Following the announcement of this partnership, the stock price surged 69% in a single day, signaling a revival. The stock, which hit a low of $1.97 in April, closed at $27.90 on the 11th, soaring over 1300%.

Andres Coello, an analyst at Scotiabank, explained, "Part of the recent rally is a reward for the work the company has done over the years." Brian Kraft, an analyst at Deutsche Bank, said, "Considering the improvement in the company's risk profile, a new stock valuation methodology is needed," and raised AST SpaceMobile's target price to $63.

Meanwhile, on the 10th, SpaceX launched a Falcon 9 carrying the Dragon space capsule for the first-ever private spacewalk. The project, named 'Polaris Dawn,' involves four people?including billionaire and pilot Jared Isaacman, retired Air Force pilot Scott Kid Poteet, and two female engineers from SpaceX?who will conduct a five-day spaceflight.