AST SpaceMobile Shares Drop 14% After Failed Satellite Launch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ASTS?
Source: seekingalpha
- Launch Failure Impact: AST SpaceMobile's shares fell 14% in premarket trading on Monday after Blue Origin's New Glenn rocket failed to place its satellite into the intended orbit, leading to operational challenges for the company.
- Satellite Loss and Insurance: Although the satellite separated from the rocket's second stage, it entered an 'off-nominal orbit,' and AST SpaceMobile stated that its altitude is too low to sustain operations, expecting it to be de-orbited, with losses covered by insurance.
- Future Launch Plans: AST SpaceMobile continues to target an average of one to two orbital launches per month in 2026, aiming to deploy around 45 satellites in orbit by the end of 2026, despite this setback potentially affecting their timeline.
- Increased Competitive Pressure: The launch failure may complicate Blue Origin's efforts to establish New Glenn as a credible competitor to SpaceX's Falcon 9, as the heavy-lift rocket has faced years of delays and a slower-than-expected launch cadence.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to rise
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 90.940
Low
43.00
Averages
91.68
High
137.00
Current: 90.940
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AST SpaceMobile's BlueBird 7 Launch Fails to Achieve Orbit
- Launch Failure: AST SpaceMobile's BlueBird 7 satellite failed to reach its intended orbit during the New Glenn rocket launch, as it was placed in a lower orbit than planned, rendering it unable to operate and leading to its de-orbiting.
- Insurance Coverage: The costs associated with BlueBird 7 are expected to be covered by the company's insurance policy, which will mitigate the financial impact of the launch failure, although the negative repercussions remain significant.
- Future Launch Plans: The company anticipates conducting an orbital launch every one to two months in 2026, aiming to have approximately 45 satellites in orbit by the end of the year, thereby advancing its space-based cellular network initiative.
- Production Progress: Currently, AST SpaceMobile is producing BlueBird 32, with BlueBird 8 to 10 expected to be ready for shipment in about 30 days, indicating the company's ongoing commitment to expanding its satellite network.
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Premarket Moves: Airlines Under Pressure, Tech Stocks Surge
- Airlines Decline: Airlines such as American Airlines, Delta Air Lines, and United Airlines saw their stocks drop over 2% as investors worry that renewed U.S.-Iran tensions will elevate energy prices, leading to reduced consumer travel.
- Tech Stocks Surge: Shares of Marvell Technology and Broadcom jumped more than 7% following reports of talks with Google to develop new AI chips, although Broadcom's stock fell nearly 1.5% on the news.
- TopBuild Acquisition: TopBuild's stock surged over 17% after QXO announced its acquisition for $17 billion, which is expected to create a higher-margin business and be immediately accretive to earnings.
- AST SpaceMobile Drop: AST SpaceMobile's shares fell 15% after a satellite was launched into the wrong orbit, although the company expects to recover costs through insurance and plans to conduct monthly orbital launches starting in 2026.
See More
AST SpaceMobile Shares Drop 14% After Failed Satellite Launch
- Launch Failure Impact: AST SpaceMobile's shares fell 14% in premarket trading on Monday after Blue Origin's New Glenn rocket failed to place its satellite into the intended orbit, leading to operational challenges for the company.
- Satellite Loss and Insurance: Although the satellite separated from the rocket's second stage, it entered an 'off-nominal orbit,' and AST SpaceMobile stated that its altitude is too low to sustain operations, expecting it to be de-orbited, with losses covered by insurance.
- Future Launch Plans: AST SpaceMobile continues to target an average of one to two orbital launches per month in 2026, aiming to deploy around 45 satellites in orbit by the end of 2026, despite this setback potentially affecting their timeline.
- Increased Competitive Pressure: The launch failure may complicate Blue Origin's efforts to establish New Glenn as a credible competitor to SpaceX's Falcon 9, as the heavy-lift rocket has faced years of delays and a slower-than-expected launch cadence.
See More
AST Spacemobile Inc: Clear Street Lowers Price Target from $137 to $115
- Price Adjustment: Space Mobile has reduced its target price from $137 to $115.
- Market Impact: This price cut may influence investor sentiment and market performance.
See More
U.S. Stock Futures Retreat Amid Renewed Geopolitical Tensions
- Futures Pullback: U.S. stock futures retreated early Monday after last week's record highs, with S&P 500 and Nasdaq futures down 0.6% and 0.7% respectively, indicating rising investor concerns over geopolitical risks.
- Strait of Hormuz Tensions: Iran's announcement to keep the critical shipping route restricted, coupled with President Trump's confirmation of seizing an Iranian cargo ship, has reignited market focus on oil price volatility, prompting renewed interest in oil-linked stocks like BATL and EONR.
- Psychedelic Stocks Surge: Following President Trump's executive order to expedite psychedelic drug approvals, stocks like Psyence Biomedical (PBM), Definium Therapeutics (DFTX), and Compass Pathways (CMPS) are gaining retail investor attention, reflecting a growing market interest in mental health treatments.
- Tesla's Positive Outlook: Tesla is on track for its first positive month this year, with Elon Musk downplaying competitive fears from China's BYD, emphasizing that execution, rather than competition, is the key challenge for the EV maker, showcasing the company's confidence in its future performance.
See More
AST SpaceMobile Stock Drops 12% in Premarket Trading Following Blue Origin Rocket's Failure to Place Satellite in Proper Orbit
Market Impact: SpaceX shares have dropped by 12% in the pre-market following the failure of the Blue Origin rocket to deploy its satellite correctly.
Rocket Launch Failure: The failure of the Blue Origin rocket has raised concerns about the reliability of satellite deployments in the space industry.
See More
AST SpaceMobile's BlueBird 7 Launch Fails to Achieve Orbit
- Launch Failure: AST SpaceMobile's BlueBird 7 satellite failed to reach its intended orbit during the New Glenn rocket launch, as it was placed in a lower orbit than planned, rendering it unable to operate and leading to its de-orbiting.
- Insurance Coverage: The costs associated with BlueBird 7 are expected to be covered by the company's insurance policy, which will mitigate the financial impact of the launch failure, although the negative repercussions remain significant.
- Future Launch Plans: The company anticipates conducting an orbital launch every one to two months in 2026, aiming to have approximately 45 satellites in orbit by the end of the year, thereby advancing its space-based cellular network initiative.
- Production Progress: Currently, AST SpaceMobile is producing BlueBird 32, with BlueBird 8 to 10 expected to be ready for shipment in about 30 days, indicating the company's ongoing commitment to expanding its satellite network.
See More
Premarket Moves: Airlines Under Pressure, Tech Stocks Surge
- Airlines Decline: Airlines such as American Airlines, Delta Air Lines, and United Airlines saw their stocks drop over 2% as investors worry that renewed U.S.-Iran tensions will elevate energy prices, leading to reduced consumer travel.
- Tech Stocks Surge: Shares of Marvell Technology and Broadcom jumped more than 7% following reports of talks with Google to develop new AI chips, although Broadcom's stock fell nearly 1.5% on the news.
- TopBuild Acquisition: TopBuild's stock surged over 17% after QXO announced its acquisition for $17 billion, which is expected to create a higher-margin business and be immediately accretive to earnings.
- AST SpaceMobile Drop: AST SpaceMobile's shares fell 15% after a satellite was launched into the wrong orbit, although the company expects to recover costs through insurance and plans to conduct monthly orbital launches starting in 2026.
See More
AST SpaceMobile Shares Drop 14% After Failed Satellite Launch
- Launch Failure Impact: AST SpaceMobile's shares fell 14% in premarket trading on Monday after Blue Origin's New Glenn rocket failed to place its satellite into the intended orbit, leading to operational challenges for the company.
- Satellite Loss and Insurance: Although the satellite separated from the rocket's second stage, it entered an 'off-nominal orbit,' and AST SpaceMobile stated that its altitude is too low to sustain operations, expecting it to be de-orbited, with losses covered by insurance.
- Future Launch Plans: AST SpaceMobile continues to target an average of one to two orbital launches per month in 2026, aiming to deploy around 45 satellites in orbit by the end of 2026, despite this setback potentially affecting their timeline.
- Increased Competitive Pressure: The launch failure may complicate Blue Origin's efforts to establish New Glenn as a credible competitor to SpaceX's Falcon 9, as the heavy-lift rocket has faced years of delays and a slower-than-expected launch cadence.
See More
AST Spacemobile Inc: Clear Street Lowers Price Target from $137 to $115
- Price Adjustment: Space Mobile has reduced its target price from $137 to $115.
- Market Impact: This price cut may influence investor sentiment and market performance.
See More
U.S. Stock Futures Retreat Amid Renewed Geopolitical Tensions
- Futures Pullback: U.S. stock futures retreated early Monday after last week's record highs, with S&P 500 and Nasdaq futures down 0.6% and 0.7% respectively, indicating rising investor concerns over geopolitical risks.
- Strait of Hormuz Tensions: Iran's announcement to keep the critical shipping route restricted, coupled with President Trump's confirmation of seizing an Iranian cargo ship, has reignited market focus on oil price volatility, prompting renewed interest in oil-linked stocks like BATL and EONR.
- Psychedelic Stocks Surge: Following President Trump's executive order to expedite psychedelic drug approvals, stocks like Psyence Biomedical (PBM), Definium Therapeutics (DFTX), and Compass Pathways (CMPS) are gaining retail investor attention, reflecting a growing market interest in mental health treatments.
- Tesla's Positive Outlook: Tesla is on track for its first positive month this year, with Elon Musk downplaying competitive fears from China's BYD, emphasizing that execution, rather than competition, is the key challenge for the EV maker, showcasing the company's confidence in its future performance.
See More
AST SpaceMobile Stock Drops 12% in Premarket Trading Following Blue Origin Rocket's Failure to Place Satellite in Proper Orbit
Market Impact: SpaceX shares have dropped by 12% in the pre-market following the failure of the Blue Origin rocket to deploy its satellite correctly.
Rocket Launch Failure: The failure of the Blue Origin rocket has raised concerns about the reliability of satellite deployments in the space industry.
See More
