After Jeff Bezos’ satellite-launch company, Blue Origin, failed to get AST SpaceMobile’s (AST) satellite into the correct orbit in April, leading to the loss of the satellite, AST says that it still remains on track to have “approximately” 45 satellites in orbit by the end of this year. Moreover, SpaceX is slated to launch three of AST’s satellites in mid-June, and AST expects to kick off beta trials of its direct-to-device satellites in 2026 with three major telecom firms.
AST is developing a satellite-based cellular broadband network. The network is supposed to enable unmodified, conventional smartphones to be connected in many remote geographic areas where they cannot obtain service today.
Further, if Blue Origin continues to have problems launching AST’s satellites, the latter firm has contracts with multiple, other satellite-launch companies, presumably allowing it to rely on firms other than Blue Origin to launch its satellites in the future.
Also importantly, AST continues to make meaningful progress when it comes to satellite manufacturing, data speed, and government contracts.
In light of all of these points, although Blue Origin’s failure was discouraging, AST’s overall outlook remains very positive, and long-term growth investors should consider buying the shares.
AST’s Satellite-Launch Program Is Still Advancing
The fact that AST plans to use SpaceX’s Falcon 9 rocket to launch three of its satellites (Bluebird 8 through Bluebird 10) in the middle of next month shows that its efforts to launch its satellites are continuing to progress rapidly in the wake of April’s failure.
Meanwhile, AST still intends to have a total of about 45 satellites in orbit as of the end of 2026 (it can launch as many as eight satellites at a time), and it plans to carry out beta trials in 2026 with AT&T (T), Verizon (VZ), and Bell Canada.
Further, speaking on AST’s first-quarter earnings call held on May 11, CEO Abel Avellan said “we have contracts with SpaceX and Blue Origin and other (satellite-launch companies).” He added that AST is “launch-vehicle agnostic.”
In other words, if Blue Origin continues to have problems launching AST’s satellites, AST can quickly and easily use other satellite-launch firms instead.
Progress in Manufacturing, Data Speed, and Government Deals
AST is in the “advanced stages of production and assembly ” of its next 23 satellites, Avellan said in a statement included in the company’s Q1 earnings press release. Further, AST has already completed the phased arrays for Bluebird 11 through Bluebird 28, the CEO noted on the earnings call. These arrays are the systems that obtain signals from smartphones and send them “to a ground station, or gateway.,” enabling broadband service.
Finally, the CEO reported that the firm’s manufacturing “pace” is “accelerating,” and he indicated that the firm is making progress towards reaching its goal of producing six satellites per month.
On the data speed front, AST ” recently achieved a peak data speed of…98.9 megabits per second” using only its first set of satellites, Avellan reported. That speed, which represented an all-time record for AST, compares to “average download speeds between 75 Mbps and 400 Mbps” for Mid-Band & Low-Bad 5G, according to Google AI. But the CEO stated that AST’s second set of satellites, which are already in orbit, should enable “nearly double” the 98.9 megabits speed level.
Finally, the firm continues to receive new contracts from Washington, as it reported on the Q1 earnings call that it had obtained “three additional awards through prime contractors,” and had reached new “milestones” included in a number of its existing deals.
AST also indicated that it could obtain additional government deals in 2026. As a result of these developments, along with the company’s progress in growing its revenue from private firms, AST reiterated its 2026 revenue of guidance of $150 million to $200 million.
And the company continues to expect to generate revenue “approaching $1 billion” in 2027.
*This article is intended to be informational only; it is not financial advice.
