AST SpaceMobile (ASTS), a satellite telecom company, shares were down by more than 8% in Monday’s trading following a major orbital setback. The company’s latest satellite, BlueBird 7, was placed into an incorrect orbit following its launch on a Blue Origin New Glenn rocket early Sunday morning.
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Trade ASTS with leverageWhat Went Wrong
BlueBird 7 was launched as part of the third mission for Blue Origin’s New Glenn rocket. While the first-stage booster successfully landed on a barge, the rocket’s upper stage failed to fire correctly. This left the satellite stranded in an orbit too low to sustain operations.
AST SpaceMobile confirmed that while the satellite powered on and separated, it does not have enough thruster power to lift itself to the correct altitude. As a result, the satellite is unusable and will be de-orbited (burned up in the atmosphere).
Despite the loss of the hardware, the company said the satellite is fully covered by insurance, which should offset the financial loss.
At the same time, the company is already producing its next batch of satellites, with BlueBirds 8 through 10 expected to be ready for shipment in about 30 days. The company still plans one to two launches per month in 2026 and aims to have 45 satellites in orbit by year-end.
Is ASTS Stock a Good Buy?
On TipRanks, ASTS has a Hold consensus rating based on three Buys, five Holds, and two Sells. The average ASTS price target of $84.46 implies nearly 1.25% downside potential from current levels.
