Shares of AST SpaceMobile (ASTS 8.45%) were moving lower today as the maker of broadband-enabling satellites faced new deep-pocketed competition. Blue Origin, Jeff Bezos's space company, announced its own satellite communications network called TeraWave. Both AST SpaceMobile and rival EchoStar fell on the news.
As of 2:25 p.m. ET, the stock was down 13.4%.
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Blue Origin moves into satellites
In a press release today, Blue Origin introduced TeraWave, a 6 terabytes per second (Tbps) space-based network, consisting of 5,408 optically interconnected satellites. The network is expected to support tens of thousands of users across enterprises, data centers and governments.
Deployment of the TeraWave constellation is expected to begin in the fourth quarter of 2027.
NASDAQ: ASTS
Key Data Points
What it means for AST SpaceMobile
AST SpaceMobile just began monetization of its deployment, bringing in $14.7 million in revenue in the third quarter, and it expects $35 million-$50 million in revenue in the fourth quarter.
AST has earned a sky-high valuation on Wall Street as investors see big potential in space-based internet connectivity.
The satellite company already competes with Elon Musk's Starlink, and one more competitor isn't necessarily a threat to AST, though it is worth paying attention to what Blue Origin does in the space.
Overall, the pullback seems more a reflection of AST's valuation than the new competitive threat, especially since Blue Origin's satellites won't be deployed for nearly two years.
AST's revenue is expected to triple in 2026 to nearly $200 million; however, even at that lofty target, the stock is trading at a price-to-sales ratio of roughly 200. In other words, high expectations are still baked into AST. Expect the stock's volatility to continue.
