📈 $ASTS: $1T Space Opportunity?
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Hey everyone! It has been a minute!
After many DMs, I’m bringing the newsletter back to give people what they want! Thanks so much for sticking with me and Underwriter 🤲.
—————————————————P.S. I’m going to give a lot more background this week on the stock rather than just jumping into the company. Hope you enjoy! ——————————————————
P.P.S. Shout-outs to my friend Chris 🧗 for this stock tip weeks ago!
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Rafael
Founder of Underwriter
🛰️ What is AST SpaceMobile?
AST SpaceMobile is a company building a space-based cell network designed to connect directly with everyday mobile phones.
🔭 What does this mean exactly?
Satellite-to-Phone tech. Unlike other satellite internet providers that require a special dish or special phone, AST SpaceMobile's technology allows regular smartphones to connect to their satellites. They are essentially putting a cell tower in space.
Global Coverage: The company is launching a constellation of satellites, called BlueBirds, to create a global network. This network is set to provide coverage on land, at sea, and in the air.
🤔 How does it work?
Partnerships: AST SpaceMobile works with major mobile operators like AT&T, Vodafone, and Google. These partnerships allow the operators to extend existing network coverage to remote or underserved areas using AST SpaceMobile's satellite infrastructure.
💭 Cool, What’s the market opportunity?
🌍 80% of the Earth lacks cell coverage. Wild but given that most of the earth is water (oceans, lakes etc) and a good amount of remote areas (Andes, Himalayas etc.), there is a lot of missing coverage.
🤳33% of humans still lack cell or internet service. It’s hard to build cell towers and fiber optic cables everywhere. AST SpaceMobile can bridge a lot of the digital divide.
💼 Lots of enterprise opportunities. Governments, remote businesses like ship companies, oil & gas, agriculture etc would benefit from a secure network that is truly global.
🤝 Partnerships -not competition. AST SpaceMobile is partnering with mobile providers like AT&T, Verizon, etc. to augment their services rather than them. This makes it much easier for them to grow.
Ok, with all that background let’s jump into the actual stock!
👩💻 Tech Advantage & Partnership 🛰️
AST SpaceMobile is looking to do a direct connection between a regular shmegular phone and a satellite. Other competitors either require special equipment or don’t offer as much bandwidth speed.
AST SpaceMobile has partnerships with 47 of the largest telecoms including AT&T, Verizon and Vodafone which represents close to 3 billion subscribers. Other providers by contrast are focused on replacing traditional networks rather than enhancing the ones already in place
🔮 Ask the Underwriter Assistant 🔮
🚀 Moving into execution
A big question surrounding AST SpaceMobile was, can they actually do it?
So far they have
secured the partnerships (AT&T, Verizon, Vodafone)
launched their first satellites
confirmed the schedule for follow-on launches
Investors have taken note of the progress and the stock has risen 38% this year.
🚀 Buy: The buy case for AST SpaceMobile is the transformative tech and market potential. The space-based cellular network is seen as a major differentiator. The company is making strides in launching satellites and has strategic partnerships locked in.
⏸️ Hold: Investors may be more cautious to see if AST SpaceMobile can continually execute. While the future satellite launches are confirmed, weather, tech failure
❗Sell: A sell case could be made for risk-averse investors who are concerned that the company isn’t yet profitable and does have competitors. Customers may be just fine with the solutions they have.