Why AST SpaceMobile (ASTS) Soared Last Week?

We recently published a list of 10 Firms That Soared Last Week. In this article, we are going to take a look at where AST SpaceMobile, Inc. (NASDAQ:ASTS) stands against other firms that soared last week.

Last week saw volatile trading in the stock market as investors scrambled to react from a series of positive and negative catalysts which sparked buying and selling positions across the board.

On Friday alone, Wall Street’s major indices fell into the red territory over renewed fears of growing trade tensions from some of the world’s largest economies, coupled with expectations of a higher inflation rate.

However, 10 firms defied a broader market slump, posting impressive gains in just a week’s trading.

To come up with last week’s biggest advancers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a communications satellite in orbit, beaming its signal down to Earth.

AST SpaceMobile, Inc. (NASDAQ:ASTS)

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS) soared by 30.98 percent week-on-week to end at $26.51 apiece as investor sentiment cheered the company’s upgraded rating from a financial services firm.

On Thursday, Cantor Fitzgerald analyst Colin Canfield initiated an “overweight” rating on the satellite communications firm and set a price target of $30 within a year.

According to Canfield, ASTS’ strategic alignment with large telecommunications and technology enterprises such as AT&T and Verizon, alongside its budding defense opportunities and supply chain readiness, make the stock a “buy.”

Just recently, AST SpaceMobile (NASDAQ:ASTS) secured the special temporary authority approval from the Federal Communications Commission (FCC) that would enable it to test its first five commercial BlueBird satellites.

FCC’s approval would support ASTS’ voice, full data, and video applications and other native cellular broadband capabilities for mobile services giants AT&T and Verizon.

Overall, ASTS ranks 5th on our list of firms that soared last week. While we acknowledge the potential of ASTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ASTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.