If you’d invested $10,000 in AST SpaceMobile stock at the IPO, here’s how much you’d have today

For those with New Year’s resolutions to stock up today SpaceMobile (ASTS -12.56%)2024 was a delight. AST SpaceMobile is developing a space-based broadband network and has seen its stock explode 540% since the start of the year.

But have investors who have held onto the stock since it first debuted on the public markets fared as well? Let’s take a look at what has driven investor sentiment toward this upstart space company and how the stock has fared.

The growth of this space stock was out of this world

Founded in 2017, AST SpaceMobile began trading on April 7, 2021, shortly after the completion of its SPAC merger. In its first day on the market, AST SpaceMobile opened at $11.63 per share and rose as high as $12.47 before settling at $11.81 to end its first trading session. For investors who bought shares of AST SpaceMobile in April 2021 and held out for the next three years, the stock’s performance was largely a disappointment as it fell more than 81% through April 2024.

However, those with the determination to continue holding past the three-year anniversary have been largely rewarded. Shares began to sizzle in May when the company struck a definitive trade deal with AT&T “to deliver their first space-based broadband network directly to everyday mobile phones,” and they continued to stay hot throughout the summer. As a result, those who invested $10,000 at the open saw their positions grow to around $33,200 as of August 19.

Don’t be surprised if stocks come back down to earth

Shares of AST SpaceMobile have risen beyond the stratosphere over the past three years, largely on the expectation that the company will execute its growth plans smoothly. But there are critical factors that potential investors need to consider, such as the company burning through large amounts of cash and failing to generate substantial revenue.

At this point, those with AST SpaceMobile on their radars are better off watching from the sidelines, waiting for the stock to pull back before starting a position.