Is AST SpaceMobile the Smartest Investment You Can Make Today?

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

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

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

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).