AST SpaceMobile(NASDAQ: ASTS) has its most important satellite launch ever coming next month. Today the company provided a business update and second-quarter results ahead of that milestone launch. Investors liked what they heard.
AST shares soared after the earnings release. As of 11:55 a.m. ET, the stock was higher by 40.3%. That added to the gain of more than 1,000% the stock has realized over the past three months as investors bet the big launch will be a success.
Satellites preparing for launch
AST's rocketed higher in recent months after the company confirmed its first commercial launch is on target for deployment in the first half of September. Its five commercial BlueBird satellites are now in Cape Canaveral awaiting the upcoming launch window.
They will be the largest-ever communications array for commercial use in low-Earth orbit. The deployment was given the green light with the recent Federal Communications Commission (FCC) licensing approval.
AST also helped generate investor excitement with strong financial backing from public telecommunications companies including AT&T, Verizon, and Vodafone. The company also counts many of the telecom companies, as well as the U.S. government, as customers.
While the company is understandably incurring costs associated with preparations for its upcoming satellite launch, investors cheered its balance sheet update. New investments have resulted in almost $290 million in cash and equivalents as of June 30. That's a sequential increase from the $212 million the company reported at the end of the first quarter.
All eyes will now be on the launch window set to begin on Sept. 11. But some investors are already betting on a successful launch and deployment of AST's first five commercial satellites after today's update.
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Howard Smith has positions in AT&T. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.
