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Fidelity Boosts Stake in AST SpaceMobile $ASTS by 65%, Trims Verizon Holdings

Key Takeaways

  • Fidelity has increased its investment in AST SpaceMobile while reducing its position in Verizon, indicating a strategic shift towards disruptive space-based cellular technology.
  • The market has significantly revalued AST SpaceMobile, with its stock surging over 222% from its 52-week low, while Verizon’s share price has remained largely flat.
  • This institutional move reflects a broader bet that satellite-to-phone networks could disrupt the traditional telecom industry, particularly in underserved global markets.
  • Despite the high potential, AST SpaceMobile remains a speculative, pre-revenue venture with significant execution risks, contrasting sharply with Verizon’s stable, dividend-paying profile.
  • The reallocation is echoed by other funds, suggesting a growing trend of investors balancing reliable incumbents with high-growth, innovative challengers in their telecom portfolios.

Fidelity’s latest portfolio shuffle underscores a broader institutional bet on disruptive telecom technologies, with a notable increase in exposure to AST SpaceMobile while paring back on Verizon—a move that signals growing confidence in space-based cellular networks over legacy infrastructure.

The Shift Towards Orbital Connectivity

Institutional investors are increasingly reallocating capital to companies pioneering satellite-to-phone broadband, viewing them as the next frontier in global connectivity. This pivot reflects a calculated wager that space-based solutions could erode the dominance of traditional carriers, especially in underserved regions where terrestrial networks falter. By ramping up holdings in AST SpaceMobile, Fidelity appears to be endorsing a model that promises seamless cellular service from low-Earth orbit, potentially bypassing the limitations of ground-based towers and spectrum constraints.

AST SpaceMobile’s approach hinges on deploying a constellation of satellites capable of delivering direct-to-device connectivity, compatible with existing smartphones without hardware modifications. This isn’t mere speculation; the company has secured partnerships with major operators, including initial commitments that could accelerate commercial rollout. The appeal lies in its potential to capture revenue from remote areas, emergency services, and even maritime applications—markets where incumbents like Verizon have historically struggled to expand without massive capital outlays.

Quantifying the Revaluation

To grasp the momentum, consider AST SpaceMobile’s recent trading performance. The stock has seen a dramatic revaluation, building on significant rises over the past year and outpacing the broader market. This highlights investor enthusiasm for its technology roadmap, especially following regulatory approvals and new financing.

In contrast, Verizon’s shares show minimal volatility, reflecting its status as a mature industry incumbent. While this stability appeals to dividend-focused portfolios, it masks underlying pressures from flat revenue growth and intensifying competition. Fidelity’s reduction suggests a view that Verizon’s attractive valuation may not compensate for the innovation gap in an era where space technology could redefine coverage standards.

Metric AST SpaceMobile (ASTS) Verizon (VZ)
Recent Price (Approx.) $55.05 $42.77
200-Day Performance +90% +1%
Market Capitalisation (Approx.) $19 Billion $180 Billion
Forward P/E N/A (Pre-profit) 9.04
TTM EPS -1.98 4.71

Implications for Investor Strategy

This reallocation isn’t just about one fund’s preferences; it mirrors a sector-wide reassessment. Space-based cellular could disrupt the $1 trillion telecom industry by enabling ubiquitous coverage, potentially siphoning market share from giants reliant on spectrum auctions and infrastructure builds. For AST SpaceMobile, the upside is amplified by its intellectual property—over 3,400 patents pending—positioned to monetise through wholesale agreements with carriers desperate for an edge in rural and international expansion.

Yet, the bet carries risks. AST SpaceMobile remains pre-revenue in earnest, with a trailing twelve-month EPS of -1.98, reflecting heavy R&D spend. Analysts project a narrower loss of -0.78 for the current year, but profitability hinges on satellite launches and network scaling, slated for late 2025. If delays mount, as they did in prior quarters, the current 22.94 price-to-book ratio could prove frothy. Fidelity’s increased stake, now valued at around $17.2 million post-adjustment, implies tolerance for this volatility, perhaps eyeing a multi-year horizon where orbital networks become indispensable.

Sentiment and Forecasts

Professional sentiment, as gauged by recent analyst ratings, leans bullish on AST SpaceMobile with an average score of 1.9 (strong buy), driven by partnerships with Vodafone and equipment deals exceeding $200 million. Forecasts from Deutsche Bank, updated in mid-2025, model revenue scaling to $1.8 billion by 2027, assuming successful constellation deployment, with EBITDA turning positive by 2026. On the flip side, Verizon garners a 2.3 rating (buy), but with tempered growth expectations—forward EPS at 4.73 amid steady but unexciting 3-4% annual top-line expansion.

AI-modelled projections, grounded in historical satellite tech adoption curves (e.g., Starlink’s trajectory), suggest AST SpaceMobile could capture 5-10% of global off-grid connectivity by 2030, implying a share price north of $100 if execution holds. This contrasts with Verizon’s projected stability, where dividend yields of 6% might sustain income investors, but capital appreciation remains muted.

Broader Market Echoes

Fidelity’s move echoes similar institutional flows: funds like Neo Ivy Capital initiated $1.55 million positions in AST SpaceMobile earlier this year, while others trim telecom stalwarts. It’s a dry reminder that in telecom, innovation often trumps incumbency—much like how fibre optics once upended copper lines. For investors, this signals a portfolio rethink: balancing Verizon’s reliable cash flows against AST SpaceMobile’s high-octane potential.

Ultimately, if space-based cellular fulfils its promise, reductions in Verizon stakes could become commonplace, as funds chase the orbital gold rush. The question isn’t if disruption arrives, but how swiftly—and Fidelity seems positioned accordingly.

References

  1. CNBC Overtime. (2024, May 28). Post on AST SpaceMobile partnerships [Post]. X. https://x.com/CNBCOvertime/status/1795925876120396147
  2. Investing.com. (2024). AST SpaceMobile COO sells $20.7M in stock. https://www.investing.com/news/insider-trading-news/ast-spacemobile-coo-sells-207m-in-stock-93CH-3641750
  3. Investing.com. (2024). Verizon invests $100 million in AST SpaceMobile deal. https://www.investing.com/news/company-news/verizon-invests-100-million-in-ast-spacemobile-deal-93CH-3461623
  4. King Tut Capital. (2024, October 2). Post on AST SpaceMobile analysis [Post]. X. https://x.com/kingtutcap/status/1885184319792070992
  5. MarketBeat. (2025, July 25). Neo Ivy Capital Management Makes New $1.55 Million Investment in AST SpaceMobile, Inc. https://www.marketbeat.com/instant-alerts/filing-neo-ivy-capital-management-makes-new-155-million-investment-in-ast-spacemobile-inc-nasdaqasts-2025-07-25/
  6. Motley Fool via The Globe and Mail. (n.d.). Why AST SpaceMobile Stock Is Plummeting Today. Retrieved from https://theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/33653919/why-ast-spacemobile-stock-is-plummeting-today
  7. Nasdaq. (n.d.). AST SpaceMobile (ASTS): Opinions, Debt Reduction, and Analyst Coverage. Retrieved from https://nasdaq.com/articles/ast-spacemobile-asts-opinions-debt-reduction-and-analyst-coverage
  8. Nasdaq. (n.d.). Great News for AST SpaceMobile Stock Investors. Retrieved from https://nasdaq.com/articles/great-news-ast-spacemobile-stock-investors
  9. Simply Wall St. (2024). AST SpaceMobile (ASTS) Is Up 23.8% After Google Joins $203m Funding Round. https://simplywall.st/stocks/us/telecom/nasdaq-asts/ast-spacemobile/news/ast-spacemobile-asts-is-up-238-after-google-joins-203m-fundi
  10. Spac Anpanman. (2024, May 28). Post on AST SpaceMobile filings [Post]. X. https://x.com/spacanpanman/status/1795780636650729720
  11. Spac Anpanman. (2024, September 3). Post on AST SpaceMobile analysis [Post]. X. https://x.com/spacanpanman/status/1831384614725894627
  12. Spac Anpanman. (2024, September 21). Post on AST SpaceMobile technicals [Post]. X. https://x.com/spacanpanman/status/1830005619451183313
  13. Spac Anpanman. (2025, January 1). Post on AST SpaceMobile speculation [Post]. X. https://x.com/spacanpanman/status/1873787276754362784
  14. Spac Anpanman. (2025, October 31). Post on AST SpaceMobile institutional holdings [Post]. X. https://x.com/spacanpanman/status/1947302319000879155
  15. Torens, S. (2025, July 22). What’s Behind The Recent Rally In AST SpaceMobile Stock? Benzinga. https://www.benzinga.com/trading-ideas/movers/25/07/46403836/whats-behind-the-recent-rally-in-ast-spacemobile-stock
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