Should You Buy AST SpaceMobile While It's Below $38?

Core Insights - Investor excitement around AST SpaceMobile has led to a stock price increase to a 52-week high of $38, but it has since cooled to around$24, raising questions about potential buying opportunities [1][5] Group 1: Business Opportunities - AST SpaceMobile has partnered with over 45 mobile telecommunications companies, including major players like Verizon and AT&T, which collectively serve approximately 2.8 billion global subscribers, providing a significant customer base [2][4] - The company estimates that 90% of the Earth's surface lacks cellular coverage, with 5.6 billion mobile devices frequently moving in and out of coverage, indicating a substantial market opportunity for its services [3][4] Group 2: Technology and Service Limitations - The initial five satellites will only provide non-continuous cellular broadband service in the U.S. and select global markets, with a full-fledged service requiring 95 satellites to be operational [5][6] - Management estimates a cost of $200 million for the next 20 satellites, suggesting a total expenditure of approximately$1.8 billion before a comprehensive service can be offered [6] Group 3: Investment Perspective - The recent pullback in stock price may present a buying opportunity for long-term investors, as the company has shown potential to fulfill its promises and could generate significant recurring revenue in the future [7][9] - Volatility is common in the early stages of fast-growing companies, and the stock could rebound following the recent decline, potentially surpassing previous highs [8][9]