Key Points

FCC authorization and additional satellite launches indicate AST's move from an idea toward a business that may produce income.
Partnerships with AT&T and Verizon lower the risk of bringing the service to market by enabling AST to build upon current cellular infrastructures.
The firm continues to encounter obstacles in satellite rollout and intense rivalry.
10 stocks we prefer over AST SpaceMobile

For years, AST SpaceMobile (NASDAQ: ASTS) represented an intriguing narrative but lacked tangible results. It envisioned delivering broadband directly to standard smartphones from orbit without modifications. In 2026, this narrative is evolving into an active operation, and this transition from potential to demonstration is what renders the present time significant for examination prior to widespread recognition.

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Why the timing is important for AST SpaceMobile at this juncture

The rationale for focusing on this stock now stems from its schedule. During May, the FCC permitted the company to operate commercial SpaceMobile Service within the United States, overcoming the primary regulatory barrier to acquiring customers. Subsequently in June, AST SpaceMobile deployed three additional BlueBird satellites, the expansive arrays responsible for linking with terrestrial phones. The goal is to achieve approximately 45 satellites in space during 2026, with over 20 more units currently being manufactured.

A limited number of satellites provide only sporadic connectivity. A sufficient quantity orbiting is necessary for seamless coverage suitable for commercial offerings. Achieving this level defines 2026, making the upcoming quarters more pivotal than typical financial updates.

The partners reducing risk in the narrative

AST SpaceMobile is not attempting to construct a phone network independently, which stands out as an underappreciated element. It integrates with established carriers. Its clearance allows use of valuable low-band spectrum alongside key allies such as AT&T (NYSE: T) and Verizon Communications (NYSE: VZ), in addition to the FirstNet public-safety network relied upon by emergency personnel. Using satellites to cover areas unreachable by towers - remote roads, crisis zones, marine environments - addresses a meaningful challenge, and commitments from major carriers decrease the chance that AST develops an unwanted solution.

The hazards that might undermine the case

Here is the candid counterpoint, as this remains a volatile equity. AST SpaceMobile produces minimal revenue against a valuation in the tens of billions, meaning investors are compensating today for outcomes largely ahead. Full worldwide coverage demands further launches, and satellite construction carries high costs. The company has often secured funds through new share issuances, reducing stakes for current holders. Deployments may delay, equipment may malfunction, and Starlink's direct-to-cell initiative competes for identical users. Any of these factors could halt progress.

"Acting now" need not imply aggressive purchases. To me, it signifies noting that AST SpaceMobile stands at an uncommon turning point - the period when a speculative idea either forms a functional network or fails - and completing due diligence before results become clear to all.

For investors tolerant of substantial loss potential, a modest, measured stake calibrated for swings is preferable to pursuing the equity after the next update. The chance is time-bound, and this works both ways.

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Micah Zimmerman holds no stakes in any mentioned equities. The Motley Fool maintains positions in and endorses AST SpaceMobile. The Motley Fool endorses Verizon Communications. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.