Bezos' Blue Origin Sends Satellite into Wrong Orbit, AST SpaceMobile Drops 12%
Shares of AST SpaceMobile plummeted on Monday after Jeff Bezos' space technology company, Blue Origin, sent a satellite into a lower-than-planned orbit on Sunday. The stock fell nearly 12% in pre-market trading. The "BlueBird 7" satellite, AST SpaceMobile's eighth, was intended for near-Earth orbit and launched on Blue Origin's third New Glenn rocket.
Blue Origin acknowledged the satellite was sent into the wrong orbit in a post on social platform X, stating it was assessing the situation and would provide further updates. The company has not released any further statements since the satellite was officially declared lost.
AST stated in a notice that the loss of the satellite will be covered by insurance. The company still expects to launch a satellite every 1 to 2 months on average by 2026, and said BlueBird satellites 8, 9, and 10 will be ready to ship within 30 days.
Analyst Views
William Blair analyst Louie DiPalma believes AST’s goal of having 45 satellites in orbit by the end of the year may now be difficult to achieve. However, he does not believe Sunday’s event is a complete loss for the company.
“AST has gained experience integrating satellites with the New Glenn rocket and collaborating with the Blue Origin team,” DiPalma wrote in a Monday research report. “This experience is critical for future missions. Fortunately, this launch only carried one satellite, while future New Glenn missions can carry up to eight of AST’s BlueBird satellites.”
Clear Street analyst Greg Pendy remains bullish on the stock, reiterating a buy rating after the incident, but lowered the price target from $137 to $115. The target price still represents a 34% increase from Friday’s closing price, but is significantly lower than the previously predicted 60% increase.
UBS analyst Christopher Scher wrote in a research report that the incident has limited financial impact on AST, but that AST and its stock performance are now deeply tied to Blue Origin, owned by Bezos.
“We believe the success of Blue Origin’s New Glenn rocket… is key to achieving year-end deployment targets and management’s 2027 revenue targets, and this uncertainty will weigh on investor sentiment in the short term until clarity emerges,” Scher wrote.