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For investors combing the market for game-changing innovations, Tuesday’s announcements from AST SpaceMobile (NASDAQ:ASTS) certainly stood out. This company, pioneering in the realm of space-based cellular broadband networks, pulled off a remarkable demonstration that sent ripples across the industry and buoyed ASTS stock.
According to the company’s press release, AST engineers managed a space-based 5G call between Maui, Hawaii, and a Madrid-based research team. This wasn’t just any call, but the first of its kind connecting an unaltered, everyday smartphone with a satellite. Significantly, it happened right in the middle of a wireless dead zone.
The backbone of this achievement was AST’s BlueWalker 3 test satellite, the largest-ever commercial communications array in low Earth orbit. But AST didn’t stop at voice communication. In another test, it shattered its own record by achieving a cellular broadband data download speed from space of about 14 Mbps.
ASTS Stock Flies Higher on Global Connectivity Implications
Tracking the performance of ASTS stock this year might give an impression of volatility, with its value seesawing periodically. It has recorded a decline of approximately 9% year-to-date. However, a deeper dive into AST’s consistent milestones indicates that its narrative may soon pivot toward optimism.
The trailblazing company has been on a roll. Earlier in April, AST unveiled its first-ever space-sourced voice calls using conventional smartphones. By June, its satellite was clocking download speeds north of 10 Mbps. And the company’s roadmap only gets more promising, with plans to launch five commercial BlueBird satellites early in 2024.
This progress isn’t merely technological. It has profound socio-economic ramifications, potentially filling the stark communication void in numerous underserved regions globally. For investors, it’s equally crucial to understand the position of ASTS stock within the vast cosmos of the space economy.
According to McKinsey & Company, the sector might touch a valuation of $1 trillion by the end of this decade. With such pioneering strides in connectivity, AST SpaceMobile seems poised to capture a significant chunk of that pie.
Why It Matters
Within the past three months, only one analyst from Barclays covered ASTS stock. However, this buy rating ties in with a substantial price target of $15, implying an upside of over 260%. Within the past year, two other experts have covered ASTS, both rating shares a buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.