Core Viewpoint - AST SpaceMobile's stock has declined by 10.8% following a downgrade by Scotiabank analyst Andres Coello, who has set a lower price target and classified the stock as a sector underperform (sell) [1][8]. Company Performance - AST SpaceMobile has partnered with major telecom companies like Verizon and AT&T to market its services, but it currently lacks any retail customers signed up independently [3]. - The company aims to launch approximately 50 satellites by late 2026 or early 2027, but has only managed to launch one satellite in 2025 and has a total of six satellites in service today [3]. - Customer adoption in the U.S. and Japan is described as slow, with the prices AST can charge being termed as modest [4]. Financial Outlook - Coello notes that even if AST successfully builds and launches all promised satellites, the high capital expenditure will likely prevent the company from generating positive free cash flow until 2028 or 2029 at the earliest [4]. - The stock was valued at $97.60 per share and had a market cap of $37 billion before the recent decline, which Coello argues is an "irrational" valuation [4]. Competitive Landscape - AST SpaceMobile faces significant competition from SpaceX's Starlink system, which offers direct-to-cell service, has global brand recognition, and is expanding its service more rapidly [5]. - Coello describes SpaceX and its founder Elon Musk as "unstoppable," highlighting the challenges AST faces in the market [5]. Analyst Recommendations - Coello estimates that AST stock might be worth a maximum of $55 per share, representing a 36% decrease from its current price, and he recommends selling the stock [6]. - The Motley Fool Stock Advisor analyst team has identified ten stocks they believe are better investment opportunities than AST SpaceMobile, indicating a lack of confidence in AST's potential [7].