ASTS is overvalued and should be avoided; current price exceeds intrinsic value estimate of $35.
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Elon Musk and SpaceX delivered bad news to investors in AT&T, Verizon, T-Mobile, and AST Space Mobile.
AST Space Mobile is doing something similar, and that company's shares have also fallen even further .
Shares of AST Space Mobile alone fell by more than 10%. This was a stock that I had already warned investors was overvalued from the start.
Therefore, the stock's drop to $50 today still puts it above my calculations of the stock's intrinsic value of $35. I have been warning investors all year about this stock, saying it is overvalued and should be avoided.
The stock is now trading near its lowest level in 52 weeks, and I still believe there is room for further declines before it becomes an attractive buying opportunity.
Certainly, this is bad news for the four companies I mentioned in this video. ASTS Space Mobile was overvalued before these events.
What this channel has said about $ASTS
Parkev Tatevosian, CFA has only this one call on this stock.