AST SpaceMobile (ASTS) shares tumbled 21.6% in June, according to data from S&P Global Market Intelligence, marking a sharp reversal for the once high-flying satellite internet company.
The decline stems from two major developments that have shaken investor confidence in the company’s ability to maintain its early lead in direct-to-device satellite internet.
AST SpaceMobile delayed its full commercial service rollout in the United States until 2027 following a setback with a Blue Origin launch, pushing its timeline back further than the market had anticipated.
The company was widely considered a pioneer in the idea that a satellite constellation could connect mobile devices directly to the internet without requiring specialized hardware on the ground.
SpaceX’s Starlink service already counts 10 million subscribers but currently requires users to purchase upfront antenna terminals, making it less portable and convenient for everyday mobile users.
The first company to deliver seamless, direct-to-device internet service on a global scale stands to gain a significant first-mover advantage, which is why investors had previously pushed ASTS shares sharply higher.
Coming into 2026, AST SpaceMobile appeared to hold the lead, bolstered by partnerships with mobile communications providers in wealthy countries including the United States.
Every delay to AST SpaceMobile’s commercial launch, however, gives SpaceX additional time to develop and scale its own competing direct-to-device Starlink offering.
SpaceX already offers messaging services direct-to-device through Starlink and recently raised billions in its IPO under the ticker SPCX, providing fresh capital to fund aggressive future growth.
With its own rocket fleet capable of sending payloads into orbit on demand, SpaceX has a structural advantage that could allow Starlink to rapidly close the gap with AST SpaceMobile and potentially surpass it.
Shares of ASTS now look increasingly precarious given the company’s large market capitalization relative to its revenue, which remains close to zero while commercial launch continues to be pushed back.
Until AST SpaceMobile can demonstrate real commercial momentum and begin generating meaningful revenue, investors face substantial uncertainty about whether the stock’s valuation is justified at current levels.
