Why AST SpaceMobile Stock Is Skyrocketing Today

AST SpaceMobile (NASDAQ: ASTS) stock is posting huge gains in Tuesday's trading. The company's share price was up 18.5% as of 2:30 p.m. ET and had been up as much as 19.8% earlier in the session.

AST published its fourth-quarter results after yesterday's market close and actually posted sales that came in lower than anticipated. Despite the revenue miss, the company's stock is making big gains thanks to management's bullish performance outlook for this year.

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AST SpaceMobile's Q4 sales miss isn't a big deal in context

AST SpaceMobile's non-GAAP (adjusted) loss per share of $0.18 in Q4 was in line with the average Wall Street analyst estimate, but its sales came in lower than expected. The business posted revenue of $1.92 million in the quarter, falling short of the average analyst target by roughly $460,000. While the sales mix may look big on a percentage basis, it's not particularly significant given that the company is still at such an early stage of its commercial scaling -- and management had some encouraging guidance for 2025.

What's next for AST SpaceMobile

AST said that it had $1 billion in cash and equivalents to fund its expansion initiatives following a recent stock sale, and management said that the company is in better position to scale its operations and lead its corner of the satellite communications industry. Coming on the heels of recent deals with Vodafone and the U.S. Space Development Agency, the business should see sales growth accelerate at a rapid pace this year. With AST bringing more satellites online and accelerating satellite manufacturing, 2025 looks set to be an exciting year for the company.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.