Is Buying a Launch Company AST SpaceMobile’s Next Vertical Integration Move?

Summary

While investors may know AST SpaceMobile NASDAQ: ASTS for its inherent volatility, the company has also developed a reputation for its vertical integration. AST SpaceMobile continues to pursue a space-based cellular broadband network, boasting 95% vertical integration across its satellite assembly, integration, and testing facilities at its headquarters in Midland, Texas.Get AST SpaceMobile alerts:Sign Up Now, the SpaceX NASDAQ: SPCX competitor may be taking its supply chain control strategy a step further. The clues lie in its recent private offering, and the implications could provide cost-savings for decades to come. Is AST SpaceMobile Positioning for a Launch-Provider Deal?Space stocks run the gamut. Some companies, like Iridium Communications NASDAQ: IRDM, provide global satellite communication networks while others, like Rocket Lab NASDAQ: RKLB, provide launch services for commercial and government customers. AST SpaceMobile Today$59.02 -2.93 (-4.72%) As of 12:06 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$36.08▼$133.86Price Target$86.95 But AST SpaceMobile, best known for its low Earth orbit (LEO) BlueBird constellation, may be preparing to take a page out of recently IPO’ed SpaceX’s playbook by gaining greater control over the launch services needed to expand. On July 15, the company announced a private offering of $1 billion in convertible senior notes that come due in 2034. AST SpaceMobile plans to use part of the proceeds for broader growth initiatives, including securing additional launch capacity through potential partnerships or acquisitions that could further vertically integrate the business and reduce its reliance on third-party launch providers. In a separate Form 8-K filed on July 15, AST SpaceMobile disclosed that it has pushed its roughly 45-satellite deployment target from the end of 2026 to early 2027, based on current launch availability. According to Tim Farrar, a consultant in satellite communi...