8 Stocks on Jim Cramer’s Radar

6. AST SpaceMobile, Inc. (NASDAQ:ASTS)

Number of Hedge Fund Holders: 18

Cramer emphasized that AST SpaceMobile, Inc. (NASDAQ:ASTS) is a spec stock and mentioned he doesn’t want it to make up a significant portion of an investment portfolio.

“There’s a whole bunch of stocks that all are very speculative and if people wanna speculate, I am not against it. I just don’t want it to be a large part of your portfolio. This company’s losing money hand over fist. Doesn’t mean the stock can’t go down, but it does mean that it’s not worth anything other than a spec.”

AST (NASDAQ:ASTS) is a company focused on developing a space-based cellular broadband network to provide global mobile connectivity, particularly in areas lacking terrestrial coverage. Despite its ambitious goals, it reported a loss of $171.95 million for the third quarter, which was a significant increase from the $20.91 million loss in the same period the previous year. On a per-share basis, the loss reached $1.10.

Operating expenses also climbed from $58.9 million last year to $66.6 million, driven by higher research and development costs as well as increased expenses for engineering services. However, as Cramer noted in a previous episode, “It’s a space stock, and space is loved right now”, the stock is up over 380% year-to-date. Additionally, the company saw a notable increase in its stock value on December 9 following the announcement of a 10-year commercial agreement with Vodafone, one of Europe’s largest telecommunications companies.

This deal is expected to further expand AST’s (NASDAQ:ASTS) reach, particularly in Africa, where Vodafone has a significant presence. Vodafone has ordered its first BlueBird gateway from the company, allowing users outside cellular coverage to connect smartphones to satellites in low Earth orbit. The gateway will route data into Vodafone’s network, enabling broadband and internet access.