How Verizon Launched AST SpaceMobile Stock Into Space Today

The direct-to-cellphone service will begin for Verizon customers in 2026, AST SpaceMobile said. (Courtesy Verizon)

Key Points

• AST SpaceMobile stock rose 16% after announcing a deal with Verizon for space-based cellular broadband services in the U.S.
• The agreement will provide Verizon customers with space-based cellular service starting in 2026, connecting them nationwide.
• AST SpaceMobile’s network connects directly to standard smartphones, removing the need for specialized equipment.

AST SpaceMobile stock surged early Wednesday after the satellite operator announced a deal with Verizon to provide space-based cellular broadband services across the U.S.

Shares jumped 16% to $86.42 in early trading and are now up more than 300% this year.

The company, a rival to Elon Musk’s Starlink, said the commercial agreement would provide Verizon customers with a space-based cellular service starting in 2026, enabling them to stay connected “wherever they are, from hiking trails to city centers and everywhere in between.”

Created with Highcharts 9.0.1AST SpaceMobileSource: FactSetAs of Oct. 8

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William Blair analyst Louie DiPalma said the deal was a “competitive win” for AST SpaceMobile over Starlink. “We view the win as a significant positive for ASTS relative to the scenario of Verizon defecting to Starlink,” he said. DiPalma has a Market Perform rating on the stock.

AST SpaceMobile said its network can connect directly to everyday smartphones, eliminating the need for specialist equipment.

“By integrating our expansive, reliable, robust terrestrial network with this innovative space-based technology, we are paving the way for a future where everything and everyone can be connected, regardless of geography,” said Srini Kalapala, Verizon’s senior vice president of technology and product development.

Verizon stock edged 0.5% lower.

Write to Callum Keown at callum.keown@dowjones.com