AST SpaceMobile rebounds after wrong-orbit BB7 setback

AST SpaceMobile (NASDAQ: ASTS) is drawing fresh attention after Crossroads Capital’s first-quarter 2026 investor letter highlighted both a BB7 wrong-orbit setback and the company’s progress moving from R&D to operational scale. The shares closed at $105.86 on

For AST SpaceMobile, the story of the last quarter has a simple rhythm: progress, a jolt, and then momentum returning.

Crossroads Capital LLC’s first-quarter 2026 investor letter points directly to the turning point. The fund reported that it increased by 4.2% net of fees and expenses during the quarter. Since its founding, the fund has compounded at a gross rate of 21.3% and a net rate of 17.1%. By the end of March 2026, the fund’s overall non-delta adjusted gross and net exposures were 114.1% and 73.3%, respectively. In that same letter. the firm said stable market trends seen in 2025 were broken by geopolitical tensions tied to Trump’s increasingly unpredictable foreign policy. which contributed to the S&P 500 falling about 4.3%.

Against that backdrop, Crossroads Capital said it was “pleased with its portfolio,” keeping its position as “special situations begin to accelerate.” One name stood out: AST SpaceMobile, Inc. (NASDAQ: ASTS).

AST SpaceMobile is a US-based satellite communication company developing a space-based cellular broadband network designed to connect directly to smartphones through its BlueBird satellites. On May 22, 2026, AST SpaceMobile closed at $105.86 per share. The stock delivered a 37.12% one-month return, and it has gained 339.34% over the past 52 weeks. Its market capitalization was listed at $41.08 billion.

In its Q1 2026 investor letter, Crossroads Capital framed the company’s operational shift as more than marketing. The letter described AST SpaceMobile’s transition from an R&D-stage startup to operational scaleup as moving “from ‘underway’ to ‘unmistakable’” over the last three months.

That progress didn’t come without trouble. The letter described one setback: BB7 was placed in the wrong orbit by the New Glenn 3 rocket. Crossroads Capital said that the downturn had “everything to do with Blue Origin’s vehicle misplacement. ” and not any failure of AST’s technology. Still. it called the incident a “healthy reminder” that navigating the space frontier is never without challenges—especially for a mission of that scale.

The financial picture, however, was presented as aligning with broader expectations for the rollout.

Crossroads Capital cited AST SpaceMobile’s early March earnings update. saying full-year 2025 revenue came in at $70.9M. at the top end of the guided range. The letter attributed that performance to 15 commercial gateway deliveries across nine MNO customers on five continents and milestones against ten active government contracts.

For 2026. Crossroads Capital pointed to revenue guidance of $150–200M—at least a doubling—while saying management offered more clarity around the $1.2B of contracted backlog and government-related scaling it expects to see into next year. It also noted that Q1 2026 revenue was $14.7M. described as light relative to consensus. but with guidance reaffirmed and revenue expected to be heavily weighted toward the second half of the year as launches begin and commercial service activates.

The same letter had one other message: the market correction tied to geopolitical volatility didn’t stop the fundamentals from lining up. Crossroads Capital said Q1 fundamentals aligned with broader trends, even as it emphasized the setback from the BB7 wrong-orbit issue.

Outside the Crossroads Capital letter, AST SpaceMobile has also been building a momentum profile among investors. A separate dataset cited within the provided material says AST SpaceMobile is not on a list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. Still. the database showed that 33 hedge fund portfolios held AST SpaceMobile at the end of the fourth quarter. up from 25 in the previous quarter. For Q1 2026, the material reiterated revenue of $14.7 million driven by commercial gateway deliveries and US government milestones.

The same piece acknowledged the investment case for AST SpaceMobile but added that it believes certain AI stocks offer “greater upside potential” and “less downside risk.” It also included a promotional note inviting readers to check a free report on the best short-term AI stock. described as undervalued and framed as benefitting from Trump-era tariffs and the onshoring trend.

At the center of the AST SpaceMobile discussion. though. is the sequence Crossroads Capital highlighted: an early operational ramp. a mission disruption tied to a launch misplacement. and then a renewed focus on revenue timing—especially as the company looks toward the second half of the year for heavier activation activity. For shareholders watching the stock’s steep run—up sharply over one month and over the past year—the next question is no longer whether AST SpaceMobile can scale. but whether its calendar-based rollout can stay on track after a mistake that came from a different rocket.

AST SpaceMobile ASTS Crossroads Capital BB7 New Glenn 3 BlueBird satellites Blue Origin satellite communications smartphone direct connectivity 2026 revenue guidance contracted backlog hedge fund holdings