AST SpaceMobile Stock Soars 14% on Rakuten Joint Venture

Nov 9, 2026

Bobby Quant Team

💡 Key Takeaway

AST SpaceMobile's joint venture with Rakuten and $1 billion in Japanese government funding validates its satellite technology, but execution risks remain as the company works toward commercial service launch.

Rakuten JV and Earnings: What You Need to Know

AST SpaceMobile (ASTS) stock jumped 14.1% on Monday, Nov. 9, after the company announced a joint venture with Japanese carrier Rakuten to bring satellite-based cell service to Japan. The new entity, Rakuten AST, will be controlled by Rakuten and will use AST's satellites to extend mobile coverage to areas with poor reception and to keep people connected during disasters.

The joint venture is set to receive up to about $1 billion in funding from the Japanese government, a sum that was already anticipated after Rakuten won a government bid in June. The partnership builds on a relationship that began in 2020, when Rakuten became an investor and strategic partner in AST SpaceMobile.

After the market closed, AST reported third-quarter earnings that showed revenue nearly tripling year-over-year to $42.3 million, but still falling short of Wall Street's expectations. The company posted a loss of $0.44 per share and reiterated its full-year revenue forecast of $150 million to $200 million.

Management also confirmed that it still expects to begin offering intermittent satellite coverage in the U.S. and other markets by the end of the year. Looking further ahead, AST said it expects to have 45 of its BlueBird satellites in orbit by mid-2027, a key milestone for building out global coverage.

What This Means for Me

If you hold ASTS, consider taking some profits after the 14% jump, but keep a core position if you believe in the long-term satellite connectivity story. Investors with exposure to telecom or satellite stocks should monitor AST's progress, as its success could disrupt traditional carriers and create opportunities in the space. Those without exposure should be aware that ASTS is highly volatile and only appropriate for a small portion of a diversified portfolio.

Why This News Matters for ASTS Stock

The Rakuten joint venture is a strong validation of AST SpaceMobile's technology and business model. By partnering with a major telecom operator and securing government funding, AST is demonstrating that its satellite-to-cell service has real-world demand and backing. This reduces the risk that the company will struggle to commercialize its technology.

Japan is a lucrative market with a high concentration of mobile users and a government that is willing to invest in advanced connectivity. The $1 billion in funding provides non-dilutive capital to support the joint venture's operations, which is crucial for a pre-revenue company like AST.

However, the earnings miss is a reminder that AST is still in its early stages. Revenue of $42.3 million, while up significantly, is small compared to the company's market cap, and the net loss shows that profitability is still years away. The reaffirmed guidance is a positive sign, but investors should watch closely to see if the company can meet its targets.

The timeline for 45 BlueBird satellites by mid-2027 is ambitious and will require significant capital and execution. Any delays could hurt the stock, especially given its high valuation. The end-of-year target for intermittent coverage in the U.S. is a near-term catalyst that could drive further gains if achieved.

Stock to Watch

Stocks	Impact	Analysis
ASTS	Positive	The Rakuten joint venture and government funding validate AST's technology and provide capital, but the earnings miss highlights execution risks. The stock could see further upside if milestones are met.

Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.