AST SpaceMobile (NASDAQ: ASTS) delivered its best single-day performance in two years, surging 21% on June 29 to close out the second quarter with momentum.
The Midland, Texas-based space-based direct-to-device cellular broadband provider had endured a bruising month despite positive operational developments on the satellite launch front.
Space stocks broadly took a hit following the SpaceX IPO in June, dragging ASTS lower even as the company successfully deployed its BlueBird satellites 8, 9, and 10 into low Earth orbit.
The catalyst behind Monday’s sharp rally was Japan’s plan to grant up to 148 billion yen, approximately $912 million, to a satellite communications project led by Rakuten (OTCMKTS: RKUNY).
Japan is backing the initiative, known as the Japan Low Earth Orbit Satellite Communications Project, or J-LEO, over concerns that critical communications infrastructure has grown too dependent on foreign networks like SpaceX’s Starlink.
The program is designed to prioritize satellite connectivity for remote areas, disaster response, and emergency communications, giving the Rakuten-led effort significant strategic value beyond a standard commercial rollout.
Rakuten also announced plans for a joint venture with AST SpaceMobile that will secure full regulatory approval for direct-to-device operations across Japan, with initial commercial services expected later in 2026.
A full rollout is slated for 2027, and having nearly $1 billion in sovereign-backed capital gives AST SpaceMobile a clearer template for monetizing its technology through carrier- and government-backed international networks.
On the operational side, AST SpaceMobile says it intends to launch BlueBirds 11, 12, and 13 from Cape Canaveral, Florida, in the first half of August, keeping the company on track toward its goal of 45 LEO satellites in orbit by end of 2026.
Analyst sentiment remains cautious, with a consensus Reduce rating among the 10 analysts currently covering ASTS and a 12-month price target implying roughly 4% upside from current levels.
Short interest adds another layer of concern, with 20.35% of the float sold short, representing nearly 62.5 million shares valued at approximately $5.47 billion.
Despite the bearish positioning, AST SpaceMobile has secured agreements with nearly 60 global mobile network providers covering more than 3 billion subscribers worldwide.
Strategic partnerships with AT&T (NYSE: T), Verizon (NYSE: VZ), Vodafone (NASDAQ: VOD), Alphabet (NASDAQ: GOOGL), and American Tower (NYSE: AMT) underline the company’s ambitions to build a truly global direct-to-device network.
The Japan development reframes AST SpaceMobile’s international rollout narrative at a critical moment, as the company works to convert its growing satellite constellation into recurring commercial revenue.
