AST SpaceMobile has caught the attention of growth-hungry investors, with its shares up over 450% year to date. The Texas-based satellite maker is moving quickly toward launching its first satellites into low Earth orbit, with full commercial operations potentially on the horizon. What does the next year hold for the company and its shareholders? AST SpaceMobile, founded in 2017, aims to revolutionize telecommunications by building a space-based cellular broadband network. This network aims to bridge connectivity gaps in underserved areas. Going public through a SPAC merger in April 2021, AST SpaceMobile's initial $10 share price lost ground over three years amid rising interest rates and shifting investor focus.

However, by mid-2024, shares surged as the company neared commercial operations. The company has completed final assembly and testing at its Texas manufacturing facility and gained FCC approval to launch five commercial BlueBird satellites in September. These BlueBird satellites intend to connect terrestrial smartphones, enhancing 4G and 5G coverage in remote areas. Unlike risky human spaceflights, AST SpaceMobile's ventures involve only hardware, mitigating potential stakes. Like many SPAC-related companies, AST SpaceMobile faces the challenge of developing maturity. The company's revenue for Q2 was a modest $900,000, dwarfed by $63.9 million in operating expenses.

With $285 million in cash reserves, the company can withstand several more quarters at its current burn rate, likely pushing it toward commercial operations. However, profitability remains a distant goal. Investors should brace for potential increases in losses over the next year as the company overcomes business scaling challenges. AST SpaceMobile will likely depend on external capital, whether through debt or equity dilution, to remain operational, which could dilute current investor shares and impact stock prices. The space industry, projected by Morgan Stanley to be worth $1 trillion by 2040, offers significant opportunities, with satellite broadband constituting a large portion.

While leaders like SpaceX and Blue Origin remain privately held, AST SpaceMobile offers regular investors a way to invest in this burgeoning sector. Despite its smaller market capitalization of $9 billion compared to SpaceX's $210 billion, partnerships with major telecom companies signify confidence in AST SpaceMobile's technology. For instance, the company signed a deal with AT&T to provide space-based wireless service until 2030. Additionally, it has an agreement with Verizon, which aims to use AST SpaceMobile's technology for comprehensive U.S. coverage. With these partnerships in place, AST SpaceMobile seems well-positioned for success as it embarks on commercial operations over the coming year.