Why is AST SpaceMobile stock rallying today?

AST SpaceMobile stock rose 2.9% in after-hours trading to reach $37.95, capping a volatile session that saw shares swing from a day low of $32.26 to a high of $38.20, driven primarily by the announcement of a strategic joint venture with Japan’s Rakuten Group to build a direct-to-device satellite network in Japan.

The newly formed entity, Rakuten AST, Inc., is structured with Rakuten holding 51% voting rights and AST SpaceMobile Japan holding 49%, and is eligible to receive up to approximately $1 billion in Japanese government funding under the country’s J-LEO program — a development that reframes AST’s satellite assets as sovereign-grade communications infrastructure.

Adding to the momentum, Cantor Fitzgerald reiterated its Overweight rating and $90 price target on the stock today, citing improving fundamentals including telecom partner support, accelerating government demand, and a clearer launch supply chain picture. The firm also noted that last week’s $1.3 billion launch supply and licensing agreement with Firefly Aerospace — which secures rocket engines and technology for AST’s planned Blacklift reusable launch vehicle — reduces investor concerns around future satellite deployment timelines, even as it raises questions about near-term cash burn. Elevated short interest of roughly 35% of the float amplified the upward move, as short-sellers rushed to cover ahead of the earnings event.

After the market close, AST SpaceMobile reported Q3 2026 revenue of $42.3 million — more than double the $14.7 million posted in Q3 2025 — though it came in slightly below the Street’s consensus estimate of approximately $46 million, and the per-share loss of $0.44 modestly exceeded the expected loss of $0.40. Crucially, the company reaffirmed its full-year 2026 revenue guidance of $150 million to $200 million and reiterated plans for initial intermittent nationwide coverage in key markets by year-end. The broader market provided a mild tailwind, with the NASDAQ Composite gaining 0.2% as investors rotated back into technology shares following last week’s sharp selloff.

Taken together, the Japan joint venture served as the ignition point for today’s move, while the Firefly deal, analyst support, and a guidance reaffirmation in the earnings release provided the scaffolding that kept gains intact into after-hours trading — even as the Q3 double-miss on both revenue and earnings per share tempered the initial enthusiasm.