disruptive

Artificial intelligence (AI) stocks may have gotten most of the attention from investors over the last few years, but some of the period’s top-performing stocks don’t hail from the AI space — at least, not directly.

Instead, they represent emerging technologies like quantum computing, electric vertical takeoff and landing (eVTOL) aircraft, small modular nuclear reactors, and rockets and satellites. The artificial intelligence boom has provided a halo effect to other emerging technologies, as growth investors have become particularly keen to find those that might power the next breakout trend. Investing early in the company that may launch the next ChatGPT would produce huge returns, the thinking seems to go.

Thanks to the speculative optimism about their potential, many of these tech stocks have delivered returns of more than 1,000%, outperforming even Nvidia. However, few hot growth stocks have beaten AST SpaceMobile (ASTS -5.49%), which is building a satellite-based broadband network.

While it has yet to generate meaningful revenue, excitement around the business and its potential have surged recently as it has forged new agreements with customers. 

ASTS data by YCharts.

Over just the last 18 months, a $1,000 investment in AST SpaceMobile would have grown into a stake worth more than $35,000. But with that climb behind it, is it too late to buy the stock? 

What is AST SpaceMobile?

AST SpaceMobile is sometimes lumped together with other space and rocket companies like Rocket Lab, Planet Labs, and SpaceX and its Starlink subsidiary, but the company says its technology can be used with existing unmodified smartphones and operates within the low- and mid-band spectrum used by mobile network operators. That contrasts with existing space-based telecom services that are intended for low-data-rate applications, such as emergency service.

The company is building the first global cellular broadband network to connect with everyday smartphones. It intends for the technology to be used for commercial and government purposes, and is designed to reach places that are not covered by terrestrial cell towers.

It is deploying a constellation of low-Earth-orbit satellites and partnering with other telecoms to provide service to users. Founded in 2017, AST SpaceMobile launched its first test satellite in 2019 and now has a total of six satellites in orbit. It aims to have 45 to 60 satellites in orbit by 2026, serving the U.S., Europe, Japan, and other markets.

AST SpaceMobile has signed partnership deals with several global telecom companies, including AT&T, Vodafone, and Rakuten, and the stock just jumped on news that it had its expanded partnership with Verizon, adding to an earlier $100 million commitment from the telecom giant. According to the new agreement, Verizon will integrate AST SpaceMobile’s satellite network with Verizon’s 850 MHz spectrum across the country, allowing Verizon’s service to reach remote areas it doesn’t currently cover.

Image source: AST SpaceMobile.

Is AST SpaceMobile a buy?

The company expects to start booking meaningful revenues in the second half of the year. Management forecasts $50 million to $75 million in sales in the second half of 2025 as it deploys intermittent service in the U.S. That will soon be followed by service coming online in other markets like the U.K., Japan, and Canada.

Management hasn’t given a forecast for 2026, but investors expect its financial momentum to continue to build as new satellites go into service. The Wall Street consensus now predicts $254.9 million in revenue in 2026.

The company’s momentum, partnerships, and satellite deployments all sound promising, but much of its expected future success is already baked into the stock price.

AST SpaceMobile’s market cap has already soared to $31 billion, a huge number for a company that has yet to generate significant revenues. Notably, it also competes in an industry — internet connectivity — with notoriously low valuations. Verizon has a market cap of $172 billion, even though it generated nearly $20 billion in profits over its last four quarters. Internet service providers carry similarly underwhelming valuations. For example, broadband and cable service provider Charter Communications has a market cap of $36 billion, and it brought in $5 billion in net income over the last year.

The size of AST SpaceMobile’s total addressable market isn’t fully clear, though management says the global wireless services market produces over $1.1 trillion in annual revenue.

AST SpaceMobile is competing globally, which differentiates it from domestic services like Verizon. However, as it’s currently structured, the satellite company essentially aims to be a subcontractor for larger telecoms, and the telecom industry is decidedly unexciting, according to investors. As long as it’s beholden to that low-valuation ecosystem, it’s difficult to picture how the company could deliver the kind of blockbuster returns that investors seem to expect, especially considering that telecom is a mature industry.

At $31 billion, AST SpaceMobile’s market cap seems to have gotten well ahead of the reality of the business, especially as commercialization could present unforeseen challenges. In the near term, the stock could move higher if it signs more partnerships or announces other promising news, but given the sky-high valuation, the stock now looks overheated.

With AST SpaceMobile, investors are playing with fire at this point. Eventually, they’ll get burned.

Democrats, bless their hearts, keep trying to figure out the magic formula to stop President Trump. But here’s a cold splash of reality: If Trump’s popularity ever collapses, it will probably be because of something completely beyond their control.

In 2020, it wasn’t some brilliant strategy that defeated Trump. It was COVID. A global pandemic. An act of God (or Wuhan).

This raises an uncomfortable thought: the next disruption — the one that might shake up the political snow globe again — will probably be much bigger than COVID. That looming disturbance is artificial intelligence.

In a recent Substack essay, Pete Buttigieg suggested that “the number one leadership challenge for world leaders, including the President of the United States, will be to manage the changes that AI is bringing about.” He goes on to note that “our president — and his opposition — have yet to make clear what their AI policies even are.”

He’s not wrong about the bipartisan lack of preparation. And for this reason, the political consequences are likely to be brutal for whichever party is in charge when the tipping point arrives and AI upends the lives of millions of Americans.

Trump still has three and a half years left on the clock — just enough time for AI to yank the rug out from under him. That’s a golden opportunity for Democrats, if they’re smart enough to capitalize on it.

But Democrats should hold off on gleefully penciling in 2028 as the year AI hands them the keys to the White House in perpetuity. Why? Because huge shocks to the system tend to empower either a) bold problem solvers or b) populist demagogues.

Lest we forget, the last seismic tech shift — the rise of the Information Age — gave us globalization, economic dislocation (for working-class Americans) and (eventually) Donald Trump.

This next disruption could be even more traumatic. AI isn’t just coming for truck drivers. It’s coming for legal assistants, graphic designers, junior software developers, even (ahem) writers. College graduates who spent decades believing their degree was a shield against obsolescence are about to get a taste of what coal miners, steelworkers, typists and travel agents have already endured.

When that happens, disenchanted moderates will radicalize, and income inequality will detonate. The people who build and control AI will obviously get filthy rich. So will superstar surgeons and elite litigators — people whose rarefied expertise and skills can’t be replicated remotely. But their legions of associates, researchers and paralegals will vanish like Blockbuster Video.

Now, for generations, lost jobs and industries were replaced by new ones — thanks to what economists call “creative destruction.” The buggy maker gave way to the auto industry and the auto mechanic, and society moved forward. But this time, the old rules may not apply — at least, not by virtue of some organic “invisible hand.”

If this shift is as severe and pervasive as many believe it will be (a huge caveat, to be sure), it won’t be solved by fiddling around with marginal tax rates or by mildly expanding unemployment benefits. It will require a vast reimagining of what the government does — the kind of thing that would make free-market purists break out in hives.

But here’s where it gets tricky for Democrats: They can’t simply hand displaced workers a check and call it a solution.

This is the core problem with universal basic income, often touted as the answer to AI-driven job losses. The modest $1,000-a-month figure that’s been floated is a joke. But even if the amount were higher, it would still have to be paired with meaningful work.

Something Democrats must learn: People don’t just want money. They crave dignity, purpose, belonging and a reason to get up in the morning.

That means thinking big and finding meaningful opportunities for the displaced to serve and provide value. Imagine one teacher for every five students in America’s public school and college classrooms. Imagine school buses with three adults instead of one overworked driver.

Imagine a national corps of well-paid nurses and physical therapists making regular visits to isolated seniors and providing full-time home healthcare.

Picture teams of young, tech-savvy Americans helping retirees navigate their iPads, iPhones, TVs and other devices — closing the digital divide for an entire generation.

Now, pair that with a bold expansion of union apprenticeships to train the next wave of electricians, plumbers and carpenters — alongside free college or vocational training in exchange for a year or two of national service.

It wouldn’t happen overnight. Managing this transition would require robust unemployment benefits — say, 90% of prior salary for a fixed period — not as welfare, but as an investment in people and a dividend on the value they’ve helped create by virtue of tax dollars (that built the internet) and data (that fuel automation). Because again, addressing the dilemma of job displacement is about more than money.

Which brings us to some important questions we had better answer.

What does it mean to be a citizen in a society when AI makes half of the labor market feel redundant? How do you retain your identity and sense of self-worth when the work you have dedicated your life to can be more efficiently done by artificial intelligence?

And how do we redeploy human beings — tens of millions of them — into roles that make life better for others and give them back the self-respect that comes from service?

AI might be the great test of our political age, and the party that passes this test will be remembered as our savior.

The party that fails this test will be remembered — if at all — as the one fiddling while Rome was automated.

Matt K. Lewis is the author of “Filthy Rich Politicians” and “Too Dumb to Fail.”

Kenton Jarvis, chief executive of the Luton-based carrier, has warned that the industrial action is presenting “unacceptable challenges” – with 70% of flights affected

EasyJet’s chief, Kenton Jarvis, has slammed the recent French air traffic control (ATC) strikes, labelling them as a source of “unexpected and significant costs for all airlines” and deeming the disruptions “unacceptable challenges”.

The Luton-based airline’s boss expressed his frustration after tens of thousands of passengers faced chaos due to the walkouts by French ATC staff on July 3 and 4 over working conditions. Both flights operating to and from French airports and those scheduled to pass through French airspace were thrown into disarray.

Each day, an average of around 3,700 flights in total were delayed and 1,400 were canceled, according to a report from Eurocontrol, the central organisation for air traffic management on the continent.

“An ATC strike in France has the potential to impact a third of flights across the continent, showing the disproportionate impact that disruptions in one busy country can have on the European network as a whole,” Eurocontrol wrote in its report.

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Ryanair also felt the sting, with another strike on Wednesday throwing a spanner in the works for the travel plans of 30,000 customers. The airline’s boss Michael O’Leary has long been a critic of the French ATC unions.

While the unions haven’t announced any further action, it’s likely there may be more strikes, given the long running nature of the dispute. UNSA-ICNA wants pay rises in line with inflation following a 2023 agreement, as well as more staffing and better working conditions.

Mr Jarvis vented: “We are extremely unhappy with the strike action by the French ATC in early July, which as well as presenting unacceptable challenges for customers and crew also created unexpected and significant costs for all airlines.”

He pointed out that French ATC strikes have been the primary culprit behind easyJet flight delays since the onset of summer. Describing the early July industrial action as “very, very disruptive”, Mr Jarvis revealed it led to the cancellation of 660 flights and inflicted a £15 million dent in their finances.

With around 70% of easyJet’s flights either heading to or from a French airport or traversing France’s airspace, the impact is potentially very substantial. Despite having “very strong measures in place to protect our operations” and an improved punctuality record, Mr Jarvis admitted that these efforts fall short when “no measures will cope when French airspace effectively closes”.

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He remarked: “What we have to do is demand that the French government steps in and really works with their ANSP (air navigation service provider) because it has been the worst-performing air traffic control area in Europe, and they get ahead of it and do some long-term measures.

“More recruitment into the tower for controllers, protecting over-flying, using AI and data that’s available nowadays to improve the life of the controller. We’re asking for improved actions, but at easyJet we’ve made a lot of investment into our resilience.”

The budget airline easyJet has felt the pinch with a £10 million blow due to the recent surge in fuel costs. The carrier celebrated a headline pre-tax profit of £286 million from April to June. This marks a £50 million boost from the same period last year.

EasyJet reported that it transported 25.9 million passengers from April to June, marking a 2.2% increase compared to the same period last year.