AST SpaceMobile's deal with Verizon validates the boom in satellite stocks

By Tomi Kilgore

Investors get what they were hoping for and more, and AST SpaceMobile's stock flies further into record territory after the Verizon cellular network deal

AST SpaceMobile's stock was soaring after a deal with Verizon gave investors what they've been betting on and more.

Shares of AST SpaceMobile Inc. shot up further into record territory Wednesday, after the satellite company inked a commercial deal with Verizon Communications Inc. to help the telecommunications giant improve its wireless network.

That's essentially what investors have been betting on as they sent satellite stocks soaring in recent months. And kudos to BofA Securities analyst Michael Funk, who said last month that low-Earth-orbit satellites presented a huge opportunity for companies like AST SpaceMobile (ASTS) and SpaceX's Starlink.

The deal comes as Verizon's wireless network, once hailed as the best in the business, has been falling behind those of rivals AT&T Inc. (T) and T-Mobile US Inc. (TMUS) And AST SpaceMobile has boasted that it has the only cellular broadband network featuring satellites deployed in low-Earth orbit that is directly accessible by smartphone users.

AST SpaceMobile's stock surged 8.5% in morning trading and has soared 66% amid a seven-day winning streak. It has run up 96.8% since BofA's Funk touted the stock in a Sept. 18 note and has rocketed 251.4% since the end of May.

Read: This satellite stock could benefit from a booming $200 billion opportunity

AST SpaceMobile said earlier Wednesday that the deal will allow Verizon to provide direct-to-cellular service when needed for its customers starting in 2026. No financial details of the deal were provided, and AST SpaceMobile didn't immediately reply to a MarketWatch request for information.

The deal was also helping boost the shares of other satellite companies, which have also been on a tear. EchoStar Corp.'s stock (SATS) has rallied 133.8% over the past three months, while ViaSat Inc. shares (VSAT) have gone up 108.8% and Globalstar Inc.'s stock (GSAT) has advanced 64.9%.

In comparison, the S&P 500 SPX has gained 8.3% over the past three months.

Meanwhile, Verizon's stock (VZ) was losing 0.6% in morning trading and has lost 4.4% over the past three months.

-Tomi Kilgore

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10-08-25 1047ET