In a significant turn of events, Deutsche Bank has alerted investors regarding potential major disruptions to Blue Origin’s launch schedule following the recent explosion of the New Glenn rocket. The firm expressed concern that the intensity of the incident may lead to substantial damage to the launchpad, necessitating a prolonged recovery period. This development poses a substantial risk to AST SpaceMobile’s satellite deployment objectives, as they rely heavily on Blue Origin’s launch capabilities.
The immediate fallout was felt in the stock market on Friday, with AST SpaceMobile Inc. (ASTS) experiencing a steep decline of nearly 18% in pre-market trading. Analysts from Deutsche Bank reacted by downgrading AST SpaceMobile’s stock rating from ‘Buy’ to ‘Hold,’ while also adjusting the price target downwards from $110 to $106. Analysts indicated that the explosion could severely hinder ASTS’s plans to position 45 satellites in orbit by the end of 2026, with projections now extending the deployment timeline by approximately six months.
Further exacerbating the situation, Roth Capital echoed similar sentiments regarding AST SpaceMobile’s commercialization timeline. They caution that delays in Blue Origin’s launch schedule could push the company’s commercial constellation deployment from the fourth quarter of 2026 into the first quarter of 2027. Nonetheless, Roth Capital maintained a ‘Buy’ rating on the stock with a price target of $108. The analyst emphasized that the repercussions of these delays might also affect Amazon’s burgeoning low-Earth orbit satellite constellation, potentially hindering competition within the direct-to-device satellite communications sector.
AST SpaceMobile currently has ambitious plans for its BlueBird satellites, aiming to achieve coverage speeds of up to 120 Mbps per cell and partnering with over 50 telecom companies globally. The company holds more than 3,800 patents and aims to connect approximately three billion subscribers worldwide.
On Stocktwits, reactions to AST SpaceMobile’s recent challenges were mixed. Despite a general trend towards ‘extremely bullish’ sentiment, some users expressed skepticism about the company’s ability to meet its satellite launch timelines. Others saw the current dip in stock price as a potential buying opportunity, emphasizing that the fundamental aspects of the company remain intact.
Despite the turbulence, ASTS stock is still up 51% for the year, while Amazon’s stock has gained 18%. Additionally, the Tema Space Innovators ETF (NASA) has risen by 63% in the past 12 months, showcasing a buoyant atmosphere in certain segments of the space and technology markets.
As the industry watches closely, the implications of the New Glenn explosion on various stakeholders will be significant in the coming months.
