AST SpaceMobile vs. First Majestic Silver: Which Industrials Stock Is a Better Buy in 2026?
2026-08-04 18:13
•Brendan Coffey •The Motley Fool
•••••• •••••••••••••• Axe Cap view
Silver Stability vs. Space Hype: A South African Investor’s Take
AST SpaceMobile promises growth but burns cash; First Majestic Silver offers profits and steadiness amid commodity volatility.
Investors face a classic dilemma between high growth and stable income when looking at AST SpaceMobile and First Majestic Silver. AST’s satellite broadband venture taps a futuristic tech niche and boasts partnerships with giants like AT&T and Vodacom, which could eventually disrupt telecom in SA. But burning over $1 billion annually and only turning profitable by 2027 means patience and risk. In contrast, First Majestic, a silver miner with strong free cash flows and a rock-solid balance sheet, benefits directly from rising silver prices—a commodity South Africa is familiar with in mining cycles. The local currency angle is critical: a stronger rand could pressure mining revenues in rand terms despite dollar strength. Meanwhile, AST’s reliance on global partners and innovation means it’s more exposed to execution setbacks and funding risks. For SA investors looking at real, tangible earnings today rather than future promises, First Majestic is the safer bet. this is just our opinion and not financial advice
Trim exposure to AST SpaceMobile for now; wait until it proves profitability and reduces cash burn. Buy or hold First Majestic Silver to benefit from steady mining cash flows and silver’s rally, keeping an eye on rand moves.
- USD/ZAR
- First Majestic Silver
- Prolonged AST SpaceMobile losses and execution failure
- Silver price volatility and rand strength squeezing mining margins
6/10
AST SpaceMobile, a satellite broadband company, is compared against First Majestic Silver, a profitable mining company. AST SpaceMobile burns $1.1B in cash annually while pursuing growth in space-based cellular networks, whereas First Majestic generates $472M in free cash flow with a strong balance sheet. The choice reflects a growth-vs.-stability investment dilemma, with AST expected to reach profitability by 2027 and First Majestic benefiting from rising silver prices.
Our take is based on reporting first published by The Motley Fool.