Satellite communications specialist AST SpaceMobile (NASDAQ:ASTS) saw its shares soar on Thursday after the announcement of its commercial satellite deployment. Called Bluebird, the satellites will represent the largest-ever commercial communications array deployed in low Earth orbit (LEO). Primarily, the network aims to extend the reach of cellular broadband, thus boosting the credibility of ASTS stock.
According to the official press release, the satellites will be shipped to Cape Canaveral in the first week of August. AST aims to meet a seven-day launch window in September. The communications specialist has already undergone rigorous testing of the satellites. Moreover, continuous monitoring will take place until the launch.
Ultimately, the exact launch data will depend on various factors, including final testing results, regulatory approvals, the meeting of logistics-related concerns and weather conditions. Still, momentum appears to be moving in the right direction.
Per the release, AST SpaceMobile secured investments from major telecommunications and technology firms, including Verizon (NYSE:VZ) and Google under Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). In addition, AST received a new contract award with the U.S. government through a prime contractor.
ASTS Stock Rises on the Practical Utility of the Space Economy
While artificial intelligence (AI) has dominated the broader innovation space, the space economy remains a powerful force. According to a McKinsey & Company report published earlier this year, it estimates that the global space economy will be worth $1.8 trillion by 2035 (accounting for inflation). That’s a significant boost from last year’s valuation of $630 billion.
Naturally, ASTS stock benefits from the wider interest in this burgeoning ecosystem. However, much of the gains seen in the equity may be attributed to the underlying credibility boost. Fundamentally, AST aims to bridge the digital divide by providing cellular broadband services to users who are out of range from terrestrial cellular coverage.
In a statement, AST CEO Abel Avellan stated the following:
“Completing the manufacturing, assembly, and environmental testing for these satellites represents a significant milestone in our mission to bridge the digital divide and deliver connectivity to those who need it most.”
While Bluebird represents an impressive achievement undergirding ASTS stock — which can deliver internet speeds up to 21 Mbps — PCMag points out that the company “must launch between 45 to 60 commercial satellites before it can offer continuous coverage in the US.”
Still, the communications specialist is moving in the right direction, thus bolstering the case for ASTS stock.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
