AST SpaceMobile Inc. (NASDAQ: ASTS) is developing the world’s first space-based cellular broadband network, with direct-to-device (D2D) technology enabling access through any standard smartphone. The computer and technology sector company has spent over a billion dollars and seven years to launch its first five Bluebird satellites into orbit.
Although often compared to Starlink—Tesla Co. (NASDAQ: TSLA) CEO Elon Musk’s satellite broadband venture—AST SpaceMobile’s approach is fundamentally different. For starters, Starlink requires a satellite dish and modem, while AST SpaceMobile’s service integrates directly with existing mobile phones.
It is worth noting that Starlink is also collaborating with T-Mobile USA Inc. (NASDAQ: TMUS)to pursue its own D2D capabilities, emphasizing how competitive and promising this new frontier has become.
1. AST SpaceMobile Has 3 Billion Potential Customers
AST SpaceMobile’s broadband cellular network is supposed to fill in coverage gaps throughout the globe in order to ensure continuous coverage for mobile network operators (MNO).
The global wireless market is valued at approximately $1.1 trillion, encompassing 5.6 billion devices.
Yet, 42% of the world’s population and 90% of the earth’s surface currently lack cellular coverage—primarily due to ocean expanses and remote terrains.
By bridging these gaps, AST SpaceMobile offers a revolutionary solution, targeting a cumulative MNO customer base of nearly three billion people.
2. AST SpaceMobile Has Deals with Verizon, AT&T, and 45+ MNOs
Before even deploying its first five BlueBird satellites, AST SpaceMobile had validated its business model through major partnerships:
AT&T Inc. (NYSE: T): Signed a six-year commercial agreement with a $20 million revenue commitment.
Vodafone also has a $25 million revenue commitment and equity investment along with Alphabet Inc. (NASDAQ: GOOGL) in AST SpaceMobile.
AST SpaceMobile has agreements with over 45 MNOs, including Rakuten Mobile, Bell Canada, Orange, Telefonica, TIM, MTN, Zain KSA, Saudi Telecom, Millicom, Globe Telecom, Smart Communications, Ooredoo Hutchinson, Telkomset, Telecom Argentina, Africell, Liberty Latin America, and Millicom, significantly expanding its reach and credibility.
3. Next-Gen BlueBird Block 2 Satellites Will Launch in 2025
The successful launch of its BlueBird Block 1 satellites in October 2024 has enabled non-continuous nationwide coverage in the United States, with over 5,600 cells in premium low-spectrum orbit.
In February 2025, AT&T and AST completed another video call demonstration over AT&T spectrum using its Block 1 BlueBird satellite service. This illustrated the seamless integration of its space-based cellular broadband networking using an everyday smartphone. Verizon and Vodaphone demonstrations also underscored the full operational capabilities of Block 1 BlueBirds.
In 2025, AST will begin deploying its Block 2 BlueBird satellites, featuring:
Application-specific integrated circuits (ASICs)
10 GHz of processing bandwidth
Data speeds up to 120 Mbps (note: corrected from “MPS”)
1,000% greater capacity than Block 1
These satellites, each spanning 2,400 square feet, are three times larger than their predecessors, with 40 Block 2 units already in production. AST has also secured launch capacity for up to 60 satellites through 2026 to enable continuous service across the United States, Europe, and Japan.
4. Costs Are Falling as Production Is Scaling
AST has expanded its manufacturing capacity. Its Midland, Texas, facility has expanded to 190,000 square feet, and the company plans to add another 85,000 square feet to its Florida facility and 50,000 more square feet to its Barcelona facility.
AST SpaceMobile is targeting the production of up to six satellites per month. When AST sent its first five Block 1 BlueBird satellites into orbit, the cost to manufacture and launch per satellite was around $30 million.
That number has dropped by nearly 30% to $19-$21 million per satellite. Keep in mind that these satellites are three times larger and ten times more powerful than their first-generation satellites.
Trump’s return brings fresh momentum to specific sectors. This free report outlines five stocks poised to outperform in a shifting political and economic landscape.
When it comes to gauging the stock market’s sentiment as a function of who is buying what, there is little that compares to tracking options buying activity. This is because options are not at all like buying shares of stock, as there are two major factors at play that significantly alter the risk-to-return profile of any given investment or trade idea.
Investors who buy a stock have a linear expectation of one-to-one returns on their capital, and the same goes for the inherent risk of the investment. On the other hand, options carry the aspect of leverage in them, as well as an expiration date, which makes the stakes even higher in terms of volatility in the duration of a given operation, as well as the fact that traders need to have the timing right lest they expire in their positions with a total loss.
Because of these implications, investors can now make sense of the unusual call options activity spotted in the Schwab US Dividend Equity ET (NYSEARCA: SCHD), an exchange-traded fund (ETF) focused on providing its shareholders with a competitive dividend yield to outperform most other indexes as well as the underlying inflation rate present in the United States economy at the time. This event also creates a potential opportunity in dividend stocks as well, as investors will now see.
Why Dividend Stocks Are Back in Play
Now that the economy is starting to slow down, perhaps as a broader cycle, as a natural follow-up to the few years of running hot, or as a potential effect of President Trump’s recent rollout of new trade tariffs, there is one benchmark that is set to move more than all others.
That benchmark is the United States ten-year treasury bond, whose price moves inversely with its underlying yield. Given the volatility uptrend in the S&P 500 index, bonds have now become a potential safe haven for investors and traders looking to protect their portfolios from further volatility.
As more capital starts to chase bonds, driving yields lower, this benchmark becomes less competitive compared to other market offers. This is when the dividend ETF comes into play, and perhaps this is why there were up to 6,887 call options as of mid-April 2025.
The Proposal in Schwab’s Dividend ETF
With this amount of call option buying comes the inherent leverage of options, which could translate this event into a multi-million dollar view taken on the ETF. Understanding where the view and action are taking place, the question now becomes why these traders decided to go into this ETF.
One reason lies in the recent price action relative to the broader S&P 500 index. Over the past week, the dividend ETF outperformed the index by as much as 3%—a critical shift, especially given the renewed volatility sparked by headlines surrounding trade tariffs with China and other countries.
At today’s prices, the ETF’s per-share dividend payout translates into an annualized yield of up to 4.1%. That not only outpaces the current U.S. inflation rate but also comes close to matching the yield on the ten-year Treasury bond.
This mix of outperformance and income potential makes the ETF especially attractive in today’s volatile environment.Beyond just chasing returns, investors may also see the ETF’s consistent dividend stream as a cushion against broader market pullbacks. The surge in options activity hints at institutional expectations not just for short-term gains, but for sustained relative strength and income-driven resilience.
Other Worthy Mentions
Just as sentiment starts to flow into this dividend ETF, the effect might also spill over onto other stable and predictable dividend stocks. Some of these stocks include the safest areas of the market, such as the real estate sector and the consumer defensive sector.
Known as “The Monthly Dividend Company,” Realty Income Appeals to Income Investors
When it comes to real estate, shares of Realty Income Co. (NYSE: O) offer investors the stability of defensive (not residential) properties, keeping the volatility of the stock severely compressed. More than that, the underlying integrity of these properties allow for a $3.22 dividend payout today, translating into a 5.5% yield today.
The company’s portfolio primarily consists of long-term, triple-net lease agreements with commercial tenants in essential industries like convenience stores, pharmacies, and supermarkets.
This structure shifts many property-related expenses to the tenants, reducing cost volatility for Realty Income andsupporting steady cash flow.
Additionally, Realty Income’s track record of monthly dividend payments—often referred to as “The Monthly Dividend Company”—has made it a favorite among income-focused investors.
Its consistent performance, even during market downturns, underscores the appeal of real estate exposure that prioritizes reliability over speculation.
PepsiCo Stock Offers Defensive Strength and Dividend Upside
Another defensive place investors can start looking into is the nature of defensive products. For this area, shares of PepsiCo Inc. (NASDAQ: PEP) come into play, with not only a consensus price target of up to $168.1 per share to offer investors a net upside of as much as 18% from today’s discount but also an attractive dividend yield.
With a payout of up to $5.42 per share each quarter, shareholders can lock in an annualized yield of 3.8% to beat inflation and get the added benefit of double-digit upside, turning their portfolios into a market-beating machine that also provides additional dividend liquidity every quarter.
PepsiCo’s strength lies in the steady demand for its core product lines—snacks and beverages—which remain resilient even during economic downturns.
This makes the company a staple in the defensive sector, where consumer loyalty and brand dominance help sustain revenue regardless of broader market conditions.
What’s more, PepsiCo’s history of consistent dividend growth reflects a shareholder-friendly capital allocation strategy. With its balanced blend of income and capital appreciation potential, the stock offers investors a compelling case for long-term stability paired with meaningful upside.
Shares of Alphabet (NASDAQ: GOOGL), the parent company of Google, have had a rough ride so far in 2025.
Like several other members of the Magnificent Seven, the tech giant is under pressure. The stock is down 27% from its 52-week high and is 20% in the red year-to-date, firmly in bear market territory.
The negative headlines haven’t helped. Last week, Alphabet was dealt another blow when a federal judge ruled that Google had operated an illegal monopoly in the online advertising market. It marked the second time in eight months that Google was labeled an unlawful monopolist under the Sherman Antitrust Act. The decision opens the door for the Department of Justice to force Google to sell parts of its ad-tech business, potentially. While Alphabet has already stated its intention to appeal the ruling, the legal overhang is adding to investor anxiety.
But underneath the noise and short-term volatility, there’s a strong bull case to be made. With a compressed valuation, strong fundamentals, and ongoing growth in critical business areas, Alphabet may be one of the most undervalued opportunities in the tech space today. Here’s why.
A Historically Low Valuation
Alphabet’s valuation is striking. The company has historically traded at a P/E ratio of approximately 28, but it has recently decreased to 18. Even more telling is the stock’s forward P/E ratio of 15. This compression reflects broader market fear and repricing across the tech sector, but it could be an overreaction. If Alphabet continues to deliver earnings growth, current levels could represent a compelling long-term entry point.
Tariff Resilience Sets Alphabet Apart
Unlike tech peers Apple, Tesla, or NVIDIA, Alphabet’s core revenue driver, digital advertising, isn’t directly tied to imported goods or exposed to global supply chain risks.
Its business is more insulated from tariffs and less reliant on China, a key differentiator in today’s volatile geopolitical climate.
With more than half of its revenue generated outside the United States, Alphabet has a global reach that is not overly dependent on politically sensitive markets.
Search Dominance and Emerging AI Leadership
While OpenAI’s ChatGPT has disrupted how users interact with information and sparked fears that generative AI could erode Google’s search dominance, Alphabet has quickly responded. The Gemini model and AI Overviews now integrate generative AI directly into Google Search. The company’s immense data advantage, through platforms such as Android, Chrome, YouTube, and Search, gives it a critical edge in training and scaling AI models more efficiently than most of its rivals.
Google Cloud is also gaining traction, with enterprise clients increasingly adopting its AI-powered tools. YouTube remains a social and entertainment giant, with revenue momentum driven by subscriptions and an expanding user base. Meanwhile, Waymo, Alphabet’s autonomous driving unit, has expanded testing across more than 10 cities and remains one of the early leaders in self-driving technology.
Strong Earnings and a Fortress Balance Sheet
Alphabet’s financials remain robust. In 2024, the company delivered 14% revenue growth and $8.04 in EPS.
For Q4, it reported revenue of $96.47 billion, just shy of expectations, and earnings of $2.15 per share, slightly beating estimates.
YouTube ad revenue was a standout, reaching $10.47 billion.
Even in a challenging environment, Alphabet continues to post strong free cash flow and profitability. With $96 billion in cash on hand, Alphabet is well-positioned to weather macro challenges and invest for the future.
Looking ahead, analysts expect EPS of $2.01 for the March 2025 quarter, up from $1.89 a year ago, a clear sign of resilience.
The Bottom Line
Alphabet’s legal troubles and stock decline paint a bleak short-term picture, but the company’s long-term fundamentals remain intact. Trading at a historically low valuation, with a dominant market position and solid financials, Alphabet looks more like a misunderstood opportunity than a company in decline. For investors with patience, the current dip could offer a rare chance to own one of tech’s biggest names at a potentially meaningful discount.
Something fascinating happens in the options market when most traders aren’t paying attention…
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The Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.
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