Why AST SpaceMobile Inc. (ASTS) Soared on Monday

We recently compiled a list of the 10 Firms Begin Trading Week With Impressive Gains. In this article, we are going to take a look at where AST SpaceMobile Inc. (NASDAQ:ASTS) stands against the other stocks.

The stock market kicked off the trading week on a positive note, with all major indices clocking in gains, as investors brushed off President Donald Trump’s latest imposition of hefty tariffs on steel and aluminum products from Canada and Mexico.

The Dow Jones rose 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

Ten companies mirrored a broader market optimism amid a series of positive catalysts sparking buying appetite.

In this article, we will take a look at which companies led the charge and explore the reasons behind their performance.

To come up with Monday’s best performers, 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. increased by 17.47 percent on Monday to finish at $31.14 apiece as analysts pointed to T-Mobile’s advertisement at the Superbowl as having perked up buying appetite.

Last night’s Superbowl game showed multiple advertisements run by T-Mobile on its new offer to let anyone in the US—not just its own customers—participate in its new direct-to-cell collaboration with SpaceX’s Starlink service.

While T-Mobile rose 3.89 percent on Monday, the optimism created a ripple effect in satellite companies, including ASTS.

In other news, ASTS recently secured the green light of the Federal Communications Commission that would enable the firm to test its five commercial BlueBird satellites to support voice, full data, and video applications and other native cellular broadband capabilities for mobile services giants AT&T and Verizon.

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

Overall ASTS ranks 4th on our list of Monday’s best performers. 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 timeframe. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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