AST SpaceMobile is in the midst of creating a satellite-based communication system.
It’s partnering with cellular providers, giving it an installed base of potential customers.
However, the company is still building out its network, which is a very costly affair.
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AST SpaceMobile (NASDAQ: ASTS) shares have rocketed higher by more than 1,000% over the past three years. Much of that gain has come since mid-2024, when the company’s prospects for actually turning its big idea into a reality started to look more feasible.
But there’s one small problem — the company still doesn’t have a fully functional service. Here’s why you might want to be cautious with AST SpaceMobile.
You can’t simply hoard a pile of cash and hope that you’ll build a seven-figure nest egg. Most people will need to take some risks, which will likely mean investing in stocks. This is where things get complicated, because the quickest way to build wealth is to pick one growth stock that goes up a lot. AST SpaceMobile’s massive price advance over the past three years is an example.
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Of course, the quickest way to lose a lot of money is to buy a single stock that goes down a lot. This happens with great regularity on Wall Street, too. You’ll probably have to cut the middle and create a diversified portfolio that includes safer investments along with riskier ones, like AST SpaceMobile. But why is AST SpaceMobile so risky?
The company is attempting to build a space-based mobile broadband network. Even better, that network is going to interact with current cellphones, so there’s no need for end users to upgrade their tech. And AST SpaceMobile has chosen to partner with existing telecom providers, so it has access to their capital and their customers.
This looks like a pretty solid plan. And now that AST SpaceMobile is launching satellites into orbit, it seems highly likely that it will be able to create the business management has long dreamed of creating.
There’s just one small…
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