Lately every time I open Reddit I keep seeing stuff about ASTS, and I’ve been watching it closely for about a week. I gotta admit it’s definitely a company with a lot of potential. It’s going through a pullback at the moment. So do you think this pullback is over? What do you think are the main reasons behind this correction?
Is ASTS worth getting into right now?
byu/Barry8809 ininvesting
Posted by Barry8809
10 Comments
This company is working on a space-based cellular broadband network. They’ve signed partnerships with some of the biggest mobile network carriers, including in the U.S., Europe, and Japan. Plus, their tech is top-notch, making them one of the leaders in the industry. Recently, their support level is around $71, with the second support at $69 (the 50-day moving average). The trading volume has been steady, around $20 million, and the volume ratio is 0.91, which means it’s a drop on lower volume, not a high-volume selloff. So, no need to panic I’m still bullish on this one
No idea about bottoms, yes to dca
The stock is a 2-3 year play. If you want in, have the time horizon in mind and don’t worry about the day-to-day action. It’s going to go up, it’s going to go down, but it’s a good bet over time.
No time like the present
Been swing trading it since $4.90 and made some nice money.
That said I agree with the general sentiment here. It’s a good long term buy. Latest resistance seems to be around $60 or so. They are a young company and not yet profitable, so be ready for the possibility of wild swings. Further dilution is a possibility as well. In the end I think they are a winner.
ASTS and RKLB are my two highest conviction growth plays. Both are extremely high Beta stocks that will swing in price wildly based on the overall market sentiment as well as company catalysts.
They’re undeniably risky investments but both are very likely to pay off in the next 2-3 years if you’re willing to stomach the volatility.
As for whether now is the right time to get in, I would DCA if you currently have no position. There are a lot of upcoming catalysts for ASTS (more launches, awards, unlocking committed investments, initial service/revenue) but the overall market could drop the price substantially any time.
As others have said, this is a multi-year hold. I’ve been in AST for two years and plan on holding until commercial service is realized at a minimum. I’ve seen meteoric rises in the share price and subsequent falls. This will be a highly volatile stock over the next two years as they continue to deploy satellites and work toward commercial service. Long term, however, I view this as an opportunity to invest in a transformative technology and I expect that the share price will recognize their uniqueness in the broader market. My personal opinion is the stock is undervalued at current prices (given TAM, technology moat, government contracts, etc.) so I am still a buyer (have purchased shares everywhere from <$10 to $70+).
Yes. It will swing up and down so you need to be prepared for that. Getting in now is the same deal as to why many are still holding despite big gains the last 2 years. ASTS is just getting started so when this thing flies, it will moonshot. NFA.
I’m currently holding ASTS. If it breaks below the 20-day moving average I think it could drop to around $50. It’s been holding that level and if it continues to hold I expect it could rally again. This move could take it into the $115–$130 range.
YES