AST SpaceMobile Inc (NASDAQ:ASTS) shares fell sharply on Monday after a satellite launched aboard a rocket operated by Blue Origin failed to reach its intended orbit.
The stock dropped around 8% following confirmation that AST SpaceMobile’s BlueBird 7 satellite was placed into a lower-than-planned orbit during Sunday’s launch on Blue Origin’s third New Glenn rocket mission.
The satellite was intended to be the company’s eighth deployed unit in low Earth orbit as part of its developing space-based cellular broadband network.
In a statement, AST SpaceMobile said BlueBird 7 powered on after deployment but could not sustain operations due to insufficient orbital altitude and would be deorbited. The company added that the cost of the satellite is expected to be covered under its insurance policy.
UBS analysts described the financial impact of the event as “measured,” pointing to the insurance coverage and AST’s broader long-term plan for more than 90 satellites over time, compared with six commercial satellites currently in orbit.
However, they cautioned that the incident is likely to weigh on investor sentiment in the near term.
UBS also highlighted the importance of the New Glenn rocket program, noting that its ability to carry multiple Block 2 satellites is “key” to meeting AST’s deployment timeline and its 2027 revenue goals.
The analysts wrote that uncertainty would likely persist until there is greater clarity on the cause of the orbital issue, which Blue Origin said remains under assessment.
Despite the setback, AST SpaceMobile reiterated its broader deployment timeline. It said it continues to expect satellite launches on average every one to two months in 2026, supported by multiple launch providers.
The company also stated that production of its next satellites remains on track, with BlueBirds 8, 9 and 10 expected to be ready for shipment within about 30 days. AST SpaceMobile is currently manufacturing through BlueBird 32 and continues to target approximately 45 satellites in orbit by the end of 2026.