Set to join the Russell 2000 and Russell 3000, AST SpaceMobile, Inc. (NASDAQ: ASTS) the leader in space-based cellular network space, has witnessed a historical quarter. ASTS has completed its first-ever direct voice connection to its satellite. Furthermore, ASTS stock is currently up 31% YTD and could soar even higher with any major catalyst due to the high short interest the stock is seeing.
ASTS Fundamentals
New Milestones
Earlier in April, ASTS achieved a historical milestone by making the first-ever space-based voice call directly to an unmodified Samsung Galaxy S22 using its BlueWalker 3 satellite. That is a huge milestone for ASTS and the industry alike which validates its technology and means that now ASTS knows that it can move forward with its roadmap. ASTS is planning to launch its Block 1 satellites in Q1 2024 and has already agreed with SpaceX to launch Block 1 on a dedicated Falcon 9 rocket.
Moreover, ASTS and AT&T (NYSE: T) made fillings regarding a spectrum lease agreement that covers the vast majority of AT&T’s low-band spectrum assets, which would enable ASTS to use them in its space mobile service. AT&T and ASTS also submitted multiple comments for the ongoing rulemaking process for supplemental coverage from space, which indicates a long partnership between the companies.
Following its first-quarter earnings, ASTS was announced to join the Russell 2000 and Russell 3000 indexes on June 26. The inclusion of ASTS stock in the Russell indexes is a huge milestone for ASTS since it will expose it to more institutional investors, potentially increasing its value further, especially since it is already up 31% year to date.
Short Data
While short interest has decreased for ASTS stock by almost 8% since November 2022, ASTS stock is still seeing a high short interest rate despite the multiple milestones it has achieved in Q1.
ASTS stock is highly shorted with a short interest of 23% and 25% of its float on loan. At the same time, utilization rate remains high at 100% which may see ASTS soaring when it joins the Russell 2000 and Russell 3000 indexes later this month since short sellers might be forced to cover their positions.
ASTS Financials
In its Q1 2023 report, ASTS’s assets decreased 15% QoQ from $268 million to $227 million, and its cash and cash equivalents decreased 22% QoQ from $238 million to $185 million. ASTS’s total liabilities increased by 6% QoQ from $78 million to $83 million.
ASTS didn’t realize any revenue in Q1 after it had achieved 2.4 million in Q1 2022. Operating costs increased almost 37% from $32 million to $44 million, which contributed to the operating loss decrease of 88% YoY from $5,467 thousand to $646 thousand, which amounted to a net loss of $45 million – an 18% increase YoY.
Technical Analysis
ASTS stock’s trend is bullish with the stock trading in an upwards channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, RSI is neutral at 58 and the MACD is approaching a bearish crossover. It is also worth noting that if the stock broke the $5.89 resistance it may enter a new channel between $5.89 and $6.78.
As for the fundamentals, ASTS stock just witnessed a catalyst in the announcement that it is joining the Russell 2000 and Russell 3000 indexes on June 26. The Russell 2000 and Russell 3000 additions will be a future catalyst that may trigger a short squeeze due to the high short interest rate.
ASTS Forecast
ASTS has reached a huge milestone by making the first-ever space-based voice call directly to an unmodified smartphone which will enable ASTS to move forward with its future plans. Furthermore, the addition to the Russell 2000 and Russell 3000 indexes is another huge milestone for ASTS, which could also trigger a short squeeze when ASTS officially joins on June 26 due to the high short interest. ASTS stock is a stock to keep an eye on, especially since it is the pioneer of space-based cellular.
ASTS Fundamentals
New Milestones
Earlier in April, ASTS achieved a historical milestone by making the first-ever space-based voice call directly to an unmodified Samsung Galaxy S22 using its BlueWalker 3 satellite. That is a huge milestone for ASTS and the industry alike which validates its technology and means that now ASTS knows that it can move forward with its roadmap. ASTS is planning to launch its Block 1 satellites in Q1 2024 and has already agreed with SpaceX to launch Block 1 on a dedicated Falcon 9 rocket.
Moreover, ASTS and AT&T (NYSE: T) made fillings regarding a spectrum lease agreement that covers the vast majority of AT&T’s low-band spectrum assets, which would enable ASTS to use them in its space mobile service. AT&T and ASTS also submitted multiple comments for the ongoing rulemaking process for supplemental coverage from space, which indicates a long partnership between the companies.
Following its first-quarter earnings, ASTS was announced to join the Russell 2000 and Russell 3000 indexes on June 26. The inclusion of ASTS stock in the Russell indexes is a huge milestone for ASTS since it will expose it to more institutional investors, potentially increasing its value further, especially since it is already up 31% year to date.
Short Data
While short interest has decreased for ASTS stock by almost 8% since November 2022, ASTS stock is still seeing a high short interest rate despite the multiple milestones it has achieved in Q1.
ASTS stock is highly shorted with a short interest of 23% and 25% of its float on loan. At the same time, utilization rate remains high at 100% which may see ASTS soaring when it joins the Russell 2000 and Russell 3000 indexes later this month since short sellers might be forced to cover their positions.
ASTS Financials
In its Q1 2023 report, ASTS’s assets decreased 15% QoQ from $268 million to $227 million, and its cash and cash equivalents decreased 22% QoQ from $238 million to $185 million. ASTS’s total liabilities increased by 6% QoQ from $78 million to $83 million.
ASTS didn’t realize any revenue in Q1 after it had achieved 2.4 million in Q1 2022. Operating costs increased almost 37% from $32 million to $44 million, which contributed to the operating loss decrease of 88% YoY from $5,467 thousand to $646 thousand, which amounted to a net loss of $45 million – an 18% increase YoY.
Technical Analysis
ASTS stock’s trend is bullish with the stock trading in an upwards channel. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, RSI is neutral at 58 and the MACD is approaching a bearish crossover. It is also worth noting that if the stock broke the $5.89 resistance it may enter a new channel between $5.89 and $6.78.
As for the fundamentals, ASTS stock just witnessed a catalyst in the announcement that it is joining the Russell 2000 and Russell 3000 indexes on June 26. The Russell 2000 and Russell 3000 additions will be a future catalyst that may trigger a short squeeze due to the high short interest rate.
ASTS Forecast
ASTS has reached a huge milestone by making the first-ever space-based voice call directly to an unmodified smartphone which will enable ASTS to move forward with its future plans. Furthermore, the addition to the Russell 2000 and Russell 3000 indexes is another huge milestone for ASTS, which could also trigger a short squeeze when ASTS officially joins on June 26 due to the high short interest. ASTS stock is a stock to keep an eye on, especially since it is the pioneer of space-based cellular.