- AST SpaceMobile rose 15% in premarket trading on Wednesday on news of a major deal.
- The satellite manufacturing company is joining forces with telecom leader Verizon.
The move: AST SpaceMobile stock surged as much as 19% on Wednesday, extending a week of strong upward momentum.
The satellite design and manufacturing company is up more than 300% in 2025.
Why: On Wednesday, AST SpaceMobile announced an agreement with Verizon to provide cell service to consumers from space. Starting next year, the company will provide Verizon customers with a direct-to-cellular connection via satellite.
According to AST SpaceMobile, its network features the largest commercial communications array ever deployed into low Earth orbit. The technology can connect directly to standard smartphones.
"The agreement will extend the scope of Verizon's 850 MHz premium low-band spectrum into areas of the U.S. that would benefit from the ubiquitous reach of space-based broadband technology, stated AST SpaceMobile founder and CEO Abel Avellan.
What it means: The Verizon deal is a major milestone for the company, which has emerged as a popular stock among retail traders looking for exposure to the growing space tech sector. The news on Wednesday prompted a jubilant reaction from traders on forums like Reddit's Wall Street Bets.
Its partnership with an industry leader like Verizon may be a turning point for what's often been viewed as a meme stock, as it could position AST SpaceMobile as a serious competitor to larger rivals like SpaceX.
In September, ASTS stock briefly surged on momentum when a Mexican news outlet reported that América Móvil was considering taking a stake, a story that SpaceMobile revealed to be false.
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