Boost Mobile founder and MobileX CEO Peter Adderton said he is a buyer of AST SpaceMobile around $40, while acknowledging shares could fall further.
His thesis centers on carriers avoiding dependence on a satellite provider that could become their biggest competitor.
Adderton, however, retains concerns about AST SpaceMobile’s tech and standalone prospects.
Boost Mobile founder and MobileX CEO Peter Adderton has turned buyer of AST SpaceMobile (ASTS) at current levels. He also floated a thesis that telecom giants could eventually look to acquire or otherwise secure the satellite company as a counterweight to SpaceX.
ASTS stock tumbled 20% last week, marking its worst weekly performance in nearly three months and its third consecutive weekly decline. Shares, however, are up 3% overnight heading into Monday.
Over the weekend, Adderton said on X that the stock’s decline had brought it to a level where he was willing to take a chance, while acknowledging it could fall further. “I think the AST SpaceMobile stock price at a $40 low is a safe time to buy for me,” he said.
“The market has finally pushed the stock down to a level that I believe better reflects the company’s underlying value.” Adderton said his position shifted when Deutsche Telekom CEO Timotheus Hottges publicly urged mobile network operator chiefs to avoid mobile virtual network operator deals with SpaceX.
MVNO (mobile virtual network operator) arrangements allow a wireless provider to serve customers using another operator’s network. Adderton, whose MobileX operates in the same market, linked his criticism of Hottges’ stance to his longstanding calls for regulators to protect fair competition for MVNOs.
He added that mobile operators’ logical next move would be to build or acquire a credible alternative to SpaceX, easing investor concerns whenever the company signals ambitions to build a mobile network. For Adderton, AST could serve that purpose. He outlined several potential routes: the carriers’ announced joint venture, an acquisition or a global consortium.
Carrier Giants Team Up As SpaceX Looms
AT&T, T-Mobile and Verizon announced plans in May to pool limited spectrum resources through a joint venture to extend satellite connectivity and reduce wireless dead zones.
The carriers announced the venture’s launch in October, saying it would improve direct-to-device access, simplify satellite integration and expand opportunities for providers. Existing carrier-satellite agreements would remain in place, and the partners could continue connectivity efforts independently.
The competitive pressure has also divided Wall Street: Piper Sandler cut AST to ‘Hold’ from ‘Buy’ and lowered its price target amid SpaceX-related concerns, while Deutsche Bank upgraded the stock to ‘Buy’, citing AST’s potential importance to traditional wireless operators competing with SpaceX.
Adderton Changes His Bet, Keeps His Doubts
However, Adderton still sees challenges for AST’s tech and its chances of succeeding independently. “I’ve changed my view on its strategic value,” he said. “And sometimes strategic value is worth a hell of a lot more than the business itself.”
In July, Adderton mocked AST supporters who had bookmarked his posts calling the company overvalued. He argued that satellite connectivity would require deep relationships with businesses experienced in mobile networks and customer services.
“Success won’t come from satellites alone it will require deep partnerships with companies that understand mobile networks, customer acquisition, billing, AI, and seamless connectivity,” he said. In August, he questioned whether payments from mobile operators for direct-to-device services would be enough to support AST’s network ambitions. “Relying primarily on revenue from MNOs for D2D satellite services simply may not be enough to support the scale of the network they are building,” he said.
Earlier this month, he continued to challenge the significance of AST’s partnerships, saying that tech agreements did not establish that operators would deploy its service at scale. “Big companies buy optionality all the time,” he wrote.
How Do Retail Traders Feel About ASTS?
On Stocktwits, retail sentiment for ASTS slipped to ‘bullish’ from ‘extremely bullish’ levels a week ago amid ‘high’ message volume.
ASTS sentiment and message volume as of October 19 | Source: Stocktwits
One user said, “$ASTS I’m not really seeing too many good reasons for why this is down to $40 again. Things seem on track launch wise, SpaceX is in the news for shutting off service during a military strike, deals are still in place with carriers… Just need a bit of good news published for it to go back up.”
Another bullish user said, “$ASTS launch news coming within the next day or two and futures way up. Bears must be poohing bricks. Lovely.”
ASTS stock has declined 44% year-to-date.
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Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
