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.
- 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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- 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.
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- 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
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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.
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