Ticker Reports for February 26th
AST SpaceMobile Stock Surges 17% After Analyst Upgrade
Shares of satellite-based cellular broadband services firm AST SpaceMobile Inc. (NASDAQ: ASTS) spiked by as much as almost 17% in morning trading on February 26, 2025, after analysts at Cantor Fitzgerald upgraded the company to a rating of Strong Buy the day prior and the firm announced its latest major contract.
Cantor is only the second Wall Street firm to re-evaluate its rating of ASTS shares so far in 2025, but it joins a number of other institutions that are already broadly optimistic about a company that has emerged as a top pick in the space race.
While investors have no doubt been enticed by Cantor's upgrade, there are many other compelling reasons why ASTS shares stand out among firms aiming to develop business in space—though it remains mostly in its pre-revenue phase, AST SpaceMobile has successfully completed a number of important operational steps that have allowed it to secure multiple critical contracts.
Further, the space market is largely untapped and fast-growing, with a number of firms like Redwire Corp. (NYSE: RDW) and Rocket Lab USA Inc. (NASDAQ: RKLB) aiming to shore up their positions in different niches. AST seems increasingly likely to have a significant role in providing satellite-based broadband to customers out of range of traditional service.
Satellite Launches and Contracts Fuel Analyst Interest
Though AST has not yet fully launched its operations, its share price rocketed upward by a massive 824% in the year leading to February 26, thanks in large part to a series of successful commercial satellite launches in September and October 2024. These developments give the company crucial infrastructure in place to begin providing intermittent service and prove that AST's technology is capable.
The company has also enjoyed numerous new contracts as its infrastructure has become increasingly robust. On February 26, and likely also contributing to the share price spike, AST announced that it had secured a $43-million subcontract on a U.S. Space Development Agency award. The company has already succeeded through a government contract involving its BlueWalker-3 satellite, launched in 2022. Though AST has not revealed many details around the terms of this latest contract agreement, it appears that it may be related to the company's direct-to-cell communications service and its capacity to support terrestrial missions under the Proliferated Warfighter Space Architecture program.
The presence of a second such agreement may signal that AST's capabilities extend further into the government space than previously anticipated, as the company has generally positioned itself as a commercial broadband services firm.
Telecom Partnerships Remain Promising
Besides a burgeoning partnership with the Space Force, AST also has numerous agreements in place with major telecommunications companies that should help to ensure its services are widely adopted as they continue to come online. As T-Mobile US Inc. (NASDAQ: TMUS) has launched its partnership with Elon Musk's Starlink, other 5G providers including Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) have rushed to partner with AST. Vodafone also announced a major 10-year agreement with AST late in 2024 that should provide additional service in markets around the world.
More Infrastructure Build-Out to Come, But Risks Remain
A January authorization from the FCC gave AST the key go-ahead to begin testing its previously launched satellites on Verizon and AT&T networks. The company plans to launch a new batch of satellites, likely later in the quarter. If these steps go smoothly, AST will be closer to fully operational.
Investors may still want to keep a couple of things in mind before diving into an ASTS position. First, shares remain highly volatile; despite the bump on February 26, they remain down more than 6% in the five-day period leading to that day, for example. Further, short interest in ASTS stock is significant. As of February 26, short interest represents more than 42.7 million shares, an increase of a whopping 30.1% over the prior month. Whether AST SpaceMobile can continue to fly high or if the bearish investors may be correct in their hesitation remains to be seen.
My 2025 AI Blueprint
I first recommended Bitcoin at $300 in 2013 … before it went up 33,645%.
Now, I am revealing my 2025 AI Blueprint.
And I have something surprising to tell you about it …
It doesn't include Nvidia.
3 Stocks With Triple-Digit PEs That Are Still Worth a Look
The price-to-earnings (P/E) ratio is one of the most commonly used metrics to determine whether a stock is expensive or cheap. Generally, the higher the P/E ratio, the more expensive a stock is relative to its earnings. But in times of risk-on sentiment, investors tend to overlook sky-high P/E ratios, betting on growth potential and momentum instead.
However, when sentiment shifts more defensively, stocks with triple-digit P/Es often get hit the hardest. That’s exactly what’s happening right now with Palantir Technologies Inc (NASDAQ: PLTR), Tesla Inc (NASDAQ: TSLA), and Broadcom Inc (NASDAQ: AVGO). Each of these tech giants has a P/E well over 100 and is currently seeing a decent amount of selling pressure.
However, sometimes steep declines create attractive entry opportunities for those willing to bet on the long-term story. Let’s take a closer look at why each of these three stocks could be setting up for a bounce in March.
PLTR: A 30% Pullback But Still Holding February’s Gains
Palantir has had a wild ride this month. After hitting a record high earlier in February, the stock has since tumbled nearly 30%, giving back a large chunk of its recent gains.
Much of the selling pressure stems from concerns about potential U.S. defense spending cuts, which could impact Palantir’s government contracts. And with a P/E ratio of 480, the stock is undoubtedly one of the most expensive on the market.
However, it’s worth noting that Palantir crushed analyst expectations in its early February earnings report, proving that its business momentum remains strong. Additionally, analysts remain bullish, with Loop Capital issuing a Buy rating last week and a $141 price target, which points to a targeted upside of more than 50%. If sentiment stabilizes and buyers step back in, Palantir could quickly reclaim lost ground and push higher into March.
TSLA: A High-Priced Stock That’s Becoming Oversold
Tesla is no stranger to high valuations, but with a P/E of 162, it trades 27 times higher than Ford Motor Co (NYSE: F). Given that the stock has been selling off for many weeks now, this comparison clearly does not sit well with many investors.
Since peaking in December, Tesla has since fallen 30%, dragged down by a weak earnings report in late January that added to valuation concerns. When a stock already trades at a high multiple and then disappoints on earnings, Wall Street tends to react aggressively, which is exactly what we’re seeing now.
However, Tesla may be approaching a turning point. Its RSI reading is 32, which suggests the stock is nearing extremely oversold territory. If it drops just a bit further, it could soon trigger a technical bounce, if not a full recovery rally. For investors willing to look past the valuation concerns and focus on Tesla’s long-term growth story, this pullback could offer an attractive entry point before momentum shifts again.
AVGO: A 20% Pullback With a Big Catalyst Ahead
Broadcom's stock price has dropped nearly 20% since December’s high, including a sharp 10% decline over the past three sessions alone.
At a P/E of 161, Broadcom looks far more expensive than key semiconductor peers like NVIDIA Corp (NASDAQ: NVDA) with its P/E of 51, and Qualcomm Inc (NASDAQ: QCOM) with its P/E of 17, making it a prime target for valuation-based selling.
But there’s one major reason to keep an eye on Broadcom - its track record of delivering strong earnings. Next week’s Q1 earnings report could be a key catalyst that reverses the stock’s recent slide. Adding to the bullish case, Morgan Stanley recently issued an Overweight rating and a $246 price target, suggesting a nearly 20% upside from Monday’s closing price of $207.
If Broadcom delivers solid numbers next week, expect the stock to bounce sharply off its recent lows as investors refocus on its long-term strength rather than its high valuation.
Final Thoughts
Triple-digit P/E stocks are often the first to sell off when sentiment shifts defensive, but they can also be the first to bounce back once the dust settles.
Palantir’s recent pullback may be overdone, Tesla is nearing oversold conditions, and Broadcom has a major earnings catalyst ahead. For investors willing to weather the short-term volatility, these three stocks could be setting up for strong moves in March.
Discover the Emerging Cryptocurrencies Set to Disrupt 2025
Recent developments in the crypto world are sparking fresh opportunities—governments are rethinking regulations, groundbreaking blockchain innovations are on the rise, and shifting market dynamics are creating new buzz around emerging tokens. With so much happening, it's an exciting time to re-examine your investment strategy.
Top 5 Emerging Cryptocurrencies to Watch in 2025
Wall Street's Most Wanted: 2 Highly Shorted Stocks Right Now
Short-selling is an interesting part of the stock market that can be dangerous and even controversial. Investors selling shares short are hoping that the price of certain stocks falls so that they can make a profit.
Short squeezes are examples of how short selling can go insanely wrong for those who partake. Still, short selling plays a key role in a healthy market. It allows bearish investors to balance the potential overexuberance of others.
Short interest as a percentage of shares outstanding is key for grasping bearish sentiment. It measures the total percentage of the company’s outstanding shares that are currently sold short. A higher number indicates a larger bet is being placed on shares falling.
Below, I’ll detail two well-known stocks that have among the largest short-interest percentages in the market. I’ll explain why some investors are so pessimistic about these firms and provide counterarguments where appropriate.
NuScale Is the First to Achieve NRC SMR Design Certification
NuScale Power (NYSE: SMR) is a high-flying stock with a big-time short interest percentage of 21%. The company’s shares have achieved an incredible return of 610% over the past 52 weeks as of the Feb. 24 close. Despite generating just $7 million in revenue over the last 12 months, the stock’s meteoric rise is due to expectations about what it could become.
NuScale makes small nuclear reactors (SMRs). Nuclear energy is the energy type of choice for hyperscaler companies looking to power their data centers to advance the AI revolution.
SMRs could offer a cheaper and faster-to-build source of nuclear energy compared to large nuclear reactors that can take a decade to build. However, the economic viability of this technology is still questionable, leading to high short interest.
NuScale notably had to cancel its project to build the first SMR in the United States due to costs running way over expectations. Still, NuScale is the first and only company to receive an SMR design certification from the U.S. Nuclear Regulatory Commission (NRC). It hopes to gain approval for another design in mid-2025.
Additionally, its SMRs are the “only U.S. NRC-approved technology with reactors already in production." If they can work out installation issues, these factors will give NuScale a significant advantage in terms of time-to-deployment.
Hims & Hers: Semaglutide Shortage Ends, Leaving Future Uncertain
Nearly 27% of Hims & Hers Health (NYSE: HIMS) shares are sold short, and these sellers recently got exactly what they were hoping for. Hims has been making a ton of money through its drug-compounding strategy in the weight loss market.
With insatiable consumer demand for the weight loss drugs made by Eli Lilly and Company (NYSE: LLY) and Novo Nordisk A/S (NYSE: NVO), the two firms haven’t been able to keep production high enough.
This resulted in the drugs tirzepatide and semaglutide ending up on the Food and Drug Administration’s (FDA) shortage list. When this is the case, legal exemptions allow other companies to sell these drugs without violating the law.
In May 2024, Hims started selling compounded semaglutide due to Novo’s shortage.
This allowed the company to increase revenue by 69% in 2024. However, Novo had been investing billions to ramp up supply. On Feb. 21, the FDA announced that it had removed semaglutide from its shortage list. Now, Hims is no longer legally allowed to sell its compounded version after May 22.
This was the event many short sellers were betting on. Shares fell nearly 26% on the same day. On Feb. 24, shares fell another 18% in after-hours trading post-earnings.
At this point, it is hard to offer much in the way of counterarguments to what short sellers were betting on. However, Hims argues that it can still sell personalized formulations of semaglutide.
This would involve altering dosage levels and titration schedules. Data on Novo’s developmental weight loss drug, Cagrisema, show that personalizing dosage and titration could offer significant benefits. Still, Hims is likely to face significant legal scrutiny if it attempts to do this.
The company also saw strong revenue growth of 43% when excluding sales from its weight-loss drug. This shows the firm is far from totally reliant on weight-loss drug sales to rapidly grow its business.
Even if it can't sell semaglutide going forward, its entry into this space has massively boosted brand awareness and subscriber numbers. The company can use this to push sales of other products. Still, it is likely best to wait for the dust around this stock to settle right now.
MarketBeat Media, LLC dba TickerReport
345 N Reid Place, Suite 620, Sioux Falls, SD 57103.