AST SpaceMobile plummets after Blue Origin rocket explosion

Shares of AST SpaceMobile plunged as much as 15% before the bell on Friday after a Blue Origin rocket exploded yesterday evening on the launchpad.

The New Glenn rocket blew up in what the Jeff Bezos-backed company described on X as “an anomaly” during a hotfire test at the launchpad, only days before it’s due to launch satellites for Amazon’s Project Kuiper next week. Bezos added via X that “it’s too early to know the root cause but we’re already working to find it.” Videos of the explosion circulating on social media show an enormous fireball.

Though AST SpaceMobile’s satellites are not directly affected by the latest explosion, the company partnered with Blue Origin in November 2024 to use its New Glenn rocket to deliver AST’s next-generation Block 2 Bluebird satellites to low-Earth orbit. Citing multiple unidentified employees, the Financial Times reported that an initial assessment of the site showed severe damage to Blue Origin’s equipment, including its only launchpad.

The explosion is a stumbling block for AST’s goals to place at least 45 satellites in orbit by the end of the year. The journey to reach that goal already hit a pretty major speed bump in April, after Blue Origin reported that its New Glenn vehicle put AST SpaceMobile’s BlueBird 7 satellite at an altitude too low to maintain operations.