AST SpaceMobile (ASTS +7.76%) was a bad investment from 2020 to the start of 2024. The stock woefully underperformed the S&P 500 during that stretch and went from $20 per share to $2 per share. However, that all changed in May 2024 when the company partnered with AT&T (T 0.69%) and announced its first commercial satellite launches for the summer.
Has ASTS beaten the stock market so far?
Because of the gains it made in 2024 and 2025, ASTS cumulatively outperformed the S&P 500 over the past five years. The space stock is up by 621% over the past five years compared to the S&P 500's 85% gain.
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The gap becomes more apparent as you narrow the time frame. The S&P 500's 73% gain over three years doesn't compare with ASTS's 1,550% gain over the same time. AST SpaceMobile has rallied by 251% this year, while the S&P 500 has managed a one-year gain of 16.4%.
The partnership with AT&T and its commercialized satellite launches were major turning points for the company. AST SpaceMobile has gone on to sign large contracts with Verizon Communications (VZ 0.76%) and STC Group, while negotiating a contract with a U.S. government customer. Those customers are part of the $1 billion in aggregate contracted revenue that the company has secured.
Can ASTS outperform the S&P 500 again in 2026?
AST SpaceMobile's space-based cellular broadband network is filling in the gaps that terrestrial signals can't cover. The company works directly with telecom companies and countries instead of offering a direct-to-consumer product.
The company's ability to win over high-paying customers is an advantage, especially as its commercialized satellites continue to scale. These satellites can connect billions of smartphones to the internet wherever people travel.
However, the stock also trades at a 778 price-to-sales ratio. That's a steep asking price for any company, especially one that regularly burns through cash. AST SpaceMobile reported a $122.9 million net loss in Q3 and only $14.7 million in revenue. Those numbers will make it difficult for AST SpaceMobile to outperform the S&P 500 again in 2026, but long-term outperformance is likely.
NASDAQ: ASTS
Key Data Points
Be patient with stocks like ASTS
Some investors look at growth stocks like ASTS and believe they should wait for a deeper correction before buying shares. The company's incredible run-up suggests that a correction may be possible. The stock is down by more than 22% from its all-time high, and all of its gains came about in the past two years.
However, other investors don't want to miss out on the long-term growth of space-based cellular broadband networks. Buying a great company at a good or OK price can pay off for investors who can wait five to 10 years.
Even the best companies can underperform for several months. There's no need to panic about ASTS stock dips if you are bullish on the stock and its investment thesis hasn't changed.
