AST SpaceMobile (ASTS 1.09%) is one of the most aggressively valued stocks on the market. The company trades at a $39 billion market cap on just $54.3 million in trailing-12-month (TTM) revenue, a price-to-sales (P/S) ratio of over 382.
NASDAQ: ASTS
Key Data Points
Why are investors paying such a premium for AST stock?
If the company can deliver on its promise, the payoff could be enormous. AST is building a satellite constellation designed to deliver cellular broadband directly to standard smartphones. Its partners include AT&T, Verizon, Vodafone, and now TELUS -- carriers collectively serving billions of subscribers. If commercial service activates at scale, recurring revenue could reach tens of billions annually. It's also recently landed a defense contract, adding another potential revenue stream.
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Is AST SpaceMobile worth the risk?
But that's a lot of "ifs." AST has a handful of satellites in orbit and plans to launch dozens more by year end, but it still has a long way to go, and there is significant execution risk.
At this valuation, you're paying a premium for a future that's far from guaranteed. Still, there's enough of an opportunity here for investors with a very high risk tolerance.
