What's particularly noteworthy is AST SpaceMobile (ASTS 0. 86%) has a great story behind it, given current economic conditions. Conversely, And the story is to take an important turn for the better.
But is it the smartest investment you can make today, in today's financial world.
However, Meanwhile, That's a harder question to answer and the answer depends on both your opinion and Wall Street's opinion of the. What does AST SpaceMobile do.
Meanwhile, AST SpaceMobile is in the cess of building a satellite network that will allow normal cellphones to have broadband connections "anywhere" on the planet.
Nevertheless, The word anywhere is in quotes because the service isn't fully operational yet, in this volatile climate.
What the re reveals is tells us that big near-term goal is to vide coverage in the United States, Europe, and Japan. Moreover, So there's a lot of the planet left to go. Image source: Getty Images.
Nevertheless, Still, being able to get a cell connection in the middle of a desert or on top of a mountain is pretty attractive.
At the same time, A key part of the story, though, is that AST SpaceMobile isn't trying to go it alone, in today's market environment.
This leads to the conclusion that data indicates that is partnering with telecom giants AT&T and Verizon Communications, which will sell the cell service to their customers (something worth watching).
Moreover, So AST SpaceMobile will be an add-on service, with monthly subscriptions for those who need it and lighter temporary options for those who only need such connectivity for a short time period.
The data indicates that big blem is that AST SpaceMobile's service requires that it send a lot of expensive satellites into space (an important development), in today's financial world.
That takes time, and money, to get done. This leads to the conclusion that money side looks increasingly doable, now that the service is to launch.
Notably, AST SpaceMobile was just able to get a $100 million loan backed by the satellites it is building.
ASTS data by YCharts Don't ignore AST SpaceMobile's price tag The time factor involved in creating the satellite network, however, is a blem for investors in another way, amid market uncertainty.
Wall Street loves a good story, and AST SpaceMobile has a good story -- which helps explain why the stock is up more than 500% over the past three years.
Over the past year alone the stock has risen more than 250%.
Nevertheless, Given that AST SpaceMobile's is still in the very early stages of its development, it seems investors have priced in a lot of good news here.
Keep in mind that the price-to-earnings ratio isn't a meaningful valuation tool because the company is losing money.
And given the capital spending that still needs to take place it bably won't generate positive earnings for a long time to come.
Moreover, The price-to-sales ratio, another of the more traditional valuation metrics, is currently over 1,000.
That's an absurd figure, which suggests Wall Street believes the company's revenue will someday be gigantic, in today's financial world. AT&T has a five-year average P/S ratio of 1. 1, for comparison.
In other words, buying AST SpaceMobile means you are paying a material amount for a that is still its infancy, in today's market environment.
Is buying AST SpaceMobile smart today, given current economic conditions. Nevertheless, There's no good answer to this question, because it involves the unknowable future.
If you believe that AST SpaceMobile's has huge potential, you may be willing to buy it today expecting the company to grow into the valuation of the stock (fascinating analysis), in today's financial world.
However, more conservative investors should bably tread with caution given the hefty premium being afforded a company that's still largely untested.
And value investors, well, they should bably run for the hills here (but at least they can get cellular broadband service when they do).
Additionally, Reuben Gregg Brewer has no position in any of the stocks mentioned. Moreover, The Motley Fool recommends Verizon Communications.
Nevertheless, The Motley Fool has a disclosure policy (an important development).