AST SpaceMobile vs. Space Exploration Technologies: Which Telecom Stock Is a Better Buy in 2026?
2026-09-04 19:29
•Brendan Coffey •The Motley Fool
••• ••••••••••••• Axe Cap view
AST SpaceMobile or SpaceX: Who Wins the Telecom Satellite Race by 2026?
AST SpaceMobile’s focused satellite strategy may offer clearer value than SpaceX’s sprawling ambitions for the next few years.
Investors should watch AST SpaceMobile closely for its niche in direct-to-phone satellite connectivity. The telecom backing from industry giants like AT&T and Vodafone lends credibility and a tangible path to profit by 2027, which is rare in space ventures. SpaceX’s Starlink, while boasting substantial revenue, is tied up with broader goals that dilute focus and strain cash flow—its multi-billion-dollar losses are worth monitoring. On the JSE, consider how MTN and Vodacom might benefit if AST’s tech takes off. The rand might modestly strengthen if AST’s success reduces South Africa’s telecom reliance on costly undersea cables. Still, AST is a speculative buy; execution risk is high and the satellite constellation deployment must go smoothly to justify optimism. If global macro conditions worsen or if telecom partners pull support, both plays could suffer. this is just our opinion and not financial advice
We’d watch AST SpaceMobile as a speculative buy, keeping an eye on satellite rollout progress and telecom partnerships. For now, avoid SpaceX-tied plays due to high cash burn and strategic noise.
- AST SpaceMobile (ASTS)
- MTN
- USD/ZAR
- Satellite constellation deployment delays
- Changing support from telecom partners
6/10
AST SpaceMobile and SpaceX compete in satellite connectivity but with different business models. AST SpaceMobile focuses on direct-to-device smartphone connectivity with partnerships from major telecom operators, while SpaceX leverages reusable rockets to scale its Starlink broadband service. Despite SpaceX's larger revenue base ($18.7B vs $70.9M) and established business, the article recommends AST SpaceMobile for 2026 due to strong telecom backing and clearer near-term profitability path, though both companies face significant cash burn and execution risks.
Our take is based on reporting first published by The Motley Fool.
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