AST SpaceMobile's stock soars to a fresh record as the SpaceX rival nears a big win

By William Gavin The satellite maker may get a slice of a $151 billion U.S. defense program AST SpaceMobile plans to provide "intermittent" direct-to-direct cellular service across the U.S. by early 2026. AST SpaceMobile shares are rising Friday as investors become even more hopeful that the SpaceX rival can get a chunk of a $151 billion defense program. The space-based-communications company has been selected as a prime contract awardee for the U.S. Missile Defense Agency's Scalable Homeland Innovative Enterprise Layered Defense, or Shield, contract. That doesn't guarantee AST SpaceMobile any contracted orders under the program, which is a 10-year agreement meant to support the Pentagon's Golden Dome initiative. The MDA has said that the initial awards for the Shield program, which has a budget ceiling of $151 billion, are designed to establish a portfolio of qualified firms. AST SpaceMobile (ASTS) said in a statement that its selection puts it in a position to compete for future task orders for research, development, engineering, prototyping and operations for MDA systems. "Being selected as a prime contract awardee for the MDA's SHIELD program is a major validation of our unique, on-orbit, dual-use technology and our growing capabilities within the defense sector," Chris Ivory, AST SpaceMobile's chief commercial officer, said in a statement on Friday. AST SpaceMobile's stock was up 15% in Friday morning action, extending its surge into record territory, according to Dow Jones Market Data. The stock has already gained 60% in 2026, contributing to a 460% rise over the last 12 months. Much of that growth has been because of AST SpaceMobile's ambitious plan to develop a constellation of satellites to provide cellular broadband coverage and compete with SpaceX's Starlink business. Last month, AST SpaceMobile launched its first next-generation satellite, which the company says will support 10 times the data capacity of its previous spacecraft. Read: AST SpaceMobile and Starlink may prove friend, not foe, to these wireless stocks The Texas-based company plans to complete five orbital launches in the first quarter of 2026 and provide "intermittent" direct-to-direct cellular service across the U.S. by early 2026, while expanding its reach later in the year. It has agreements with more than 50 mobile-network operators, including Verizon Communications (VZ). In November, AST SpaceMobile said it had secured more than $1 billion in contracted revenue commitments from commercial partners, a first for the company. Scott Wisniewski, the firm's chief strategy officer, also said at the time that his company is benefiting from the "most positive backdrop" for U.S. investment in space since the 1960s. "National security demand has effectively reset the risk profile for the space economy. Programs tied to missile defense, orbital resilience, and strategic competition have created a durable baseline of demand that didn't exist five years ago," Chad Anderson, CEO of venture-capital firm Space Capital, told MarketWatch earlier this week over email. See more: The 'space economy' is booming. Here's where most of the money is going. More than 2,000 companies have been selected for the Shield program, including 340 that were added to the list this week. The newest group includes a variety of companies, such as rocket makers Firefly Aerospace (FLY) and Blue Origin and traditional defense firms like L3 Harris Technologies, which this week announced a deal that will make the U.S. government a stakeholder. Firefly Aerospace shares were up over 12% Friday morning on the news, along with a price-target raise from Morgan Stanley analysts. Shares of Rocket Lab (RKLB), which was selected for the Shield program in December, are up 6% in morning trading after also receiving a price-target raise from Morgan Stanley. -William Gavin This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 01-16-26 1149ET