Ahead of AST SpaceMobile Earnings, Here's What Barchart Data Says Comes Next for ASTS Stock

Investors are bailing on AST SpaceMobile (ASTS) shares ahead of the satellite connectivity firm’s Q2 earnings scheduled to be released later today after market close. Consensus is for the firm to post a loss of $0.28 per share for its second fiscal quarter, significantly narrower than the $0.41 per-share loss last year. 

The quarterly print is significant for AST SpaceMobile stock, as it’s currently down more than 45% versus its year-to-date high in late May. 

What Barchart’s Data Says About AST SpaceMobile Stock

Heading into the earnings release, Barchart holds an “88% SELL” opinion on ASTS shares, cautioning against betting on a swift recovery on the back of the Q2 print. 

Note that this opinion is based on 13 separate technical indicators, covering all three (short-, medium-, and long-term) timeframes. 

Importantly, much of AST SpaceMobile’s decline in recent months was due to its stretched valuation. Yet, even after the decline, it trades for nearly 369x sales, which isn’t attractive by any reasonable measure. 

And it’s not like ASTS pays a healthy dividend to offset the aforementioned technical and valuation concerns either. 

Where Options Data Suggests ASTS Shares Are Headed

On the flip side, options traders haven’t thrown in the towel on AST SpaceMobile shares. 

According to Barchart, the put-to-call ratio on derivatives contracts expiring Aug. 14 sits at 0.62x at writing, indicating a bullish skew heading into the quarterly release. 

The upper price on those contracts is set at nearly $77 currently, signaling potential for a more than 10% rally within days after the company’s Q2 print. 

Moreover, AST SpaceMobile continues to face heavy capital burn and the threat of shareholder dilution to fund its satellite deployment schedule. 

Persistent launch delays and fierce competition could also weigh on its margins before commercialization yields meaningful revenue.

How Wall Street Recommends Playing AST SpaceMobile

For long-term investors, however, Wall Street firms continue to recommend at least some exposure to Nasdaq-listed AST SpaceMobile. 

The consensus rating on the satellite connectivity specialist remains at “Moderate Buy,” with the mean price target of about $86 indicating potential upside of more than 25% from here.