AST falls after Bezos’ Blue Origin places satellite in wrong orbit

AST SpaceMobile experienced a setback when a Blue Origin New Glenn rocket failed to place their BlueBird 7 satellite into the intended orbit. This led to an 8% drop in AST’s stock price as investors reacted to the news.

The satellite was supposed to be the eighth launched by AST into low-earth orbit, but the mishap with the rocket caused it to end up in the wrong orbit. Blue Origin acknowledged the error and stated that they were assessing the situation to provide further updates. Despite this setback, AST remains optimistic about their future satellite launches, with plans to launch satellites once every one to two months in 2026.

The cost of the lost satellite is expected to be covered by insurance, and AST is still on track to launch more satellites in the near future. The company mentioned that BlueBird satellites 8, 9, and 10 should be ready for shipment within 30 days.

Analysts have mixed views on AST’s future prospects following the failed launch. While William Blair analyst Louie DiPalma sees the experience gained from working with Blue Origin as valuable for future missions, Clear Street analyst Greg Pendy remains bullish on the stock but has adjusted his price target downwards. UBS analyst Christopher Schoell believes that AST’s performance is now closely tied to the success of Blue Origin’s New Glenn vehicle and expects investor sentiment to be impacted in the short term.

Despite the setback, AST SpaceMobile remains focused on its mission to deploy a large number of satellites by the end of the year. The company’s resilience in the face of challenges demonstrates its determination to succeed in the competitive space industry.