AST SpaceMobile (ASTS) stock soars 382%: Is it good time to invest?

AST SpaceMobile stock is surging, extending a massive rally fueled by a strategic entry into the defense sector and continued progress on its ambitious satellite network.

Over the past 12 months, the shares have climbed to a staggering 382%.

Recently, in premarket trading on Friday, January 16, the shares surged again by 7%. The primary reason for this continued increase is the company’s selection as an eligible vendor for the U.S. Missile Defense Agency’s SHIELD program, which opens the door to bidding on a potential $151 billion pool of work.

Commenting on this, Chief Commercial Officer Chris Ivory stated, “This established AST SpaceMobile as an eligible provider to bid directly on future task orders.”

The move sparks investor optimism that the SpaceX rival will expand beyond its telecom focus into lucrative government contracts.

Despite the company’s skyrocketing valuation, Wall Street analysts raise concerns. With this, many investors are asking: Is this a buying opportunity or a bubble waiting to burst?

Company’s recent milestones predict that the plan is gaining real momentum. AST’s satellite BlueBird 6, now in orbit, is the largest commercial communications array ever deployed in low Earth orbit.

Additionally, AST has partnered with over 50 mobile carriers, indicating a potential subscriber base of 3 billion.

On the flip side, financial analysts' skepticism paints a more cautious picture. Investing in AST SpaceMobile stock today is a high conviction bet on perfect execution.

The payoff is ownership in a company that could very well change the world. The risk is that the stock price has already run ahead of itself, and any execution issues or market sentiment could have a negative impact.

This could be a decent time to invest if one has high risk tolerance, a very long horizon, and believes the company can eventually justify its premium.

For all others, the screaming disconnect between prices and near-term fundamentals, issued as warnings by Wall Street, argues for extreme caution. In the high-stakes space race, ASTS has stellar potential, but the ride will likely remain volatile.