ASTS Stock Faces Setback After BlueBird-7 Launch Issue
Shares of AST SpaceMobile, Inc. (ASTS) dropped 15% in overnight trading late Sunday following the company’s confirmation that its BlueBird-7 satellite failed to reach its intended orbit during a recent launch. The satellite will now de-orbit instead of joining the company’s space-to-smartphone broadband constellation.
This setback comes after ASTS stock had already experienced a 10% decline last week due to repeated timeline adjustments for the BlueBird-7 launch. The company had been under pressure before the launch outcome, with its stock ending the previous week lower after breaking a two-week winning streak.
BlueBird-7 Misses Intended Orbit
The BlueBird-7 spacecraft successfully separated from the launch vehicle and powered on as expected. However, the upper stage of Blue Origin’s New Glenn-3 mission placed it at an altitude too low to sustain operations using onboard thrusters. According to AST SpaceMobile, the satellite’s cost is expected to be recovered under its insurance policy.
CEO Abel Avellan took to X to comment on the issue, stating that the rocket’s second stage did not place BlueBird-7 into its intended orbit. “The first stage was nominal, and the booster came back beautifully. We separated and turned on as expected, but the launch vehicle second stage did not place BlueBird-7 on its intended orbit.”
BlueBird-7 would have been the company’s eighth satellite deployed into low Earth orbit. Despite this setback, AST SpaceMobile remains focused on its production schedule, with BlueBird-32 currently in production. The company plans to ship BlueBird-8 through BlueBird-10 within 30 days. “We are on Satellite 32 and plan to ship BB8 to 10 in approximately 30 days,” Avellan said, adding that the company continues to target 45 satellites in orbit this year.
Direct-To-Phone Network Strategy Remains Intact
BlueBird-7 was part of AST SpaceMobile’s next-gen Block-2 satellite platform designed to deliver cellular broadband connectivity directly to standard, unmodified smartphones from low Earth orbit. These Block-2 satellites feature phased-array communications antennas spanning 2,400 square feet and can support full 4G and 5G voice, data, and video services. They are expected to offer peak data speeds exceeding 120 Mbps and higher bandwidth capacity than earlier BlueBird satellites.
AST SpaceMobile has agreements with over 50 mobile network operators representing nearly 3 billion subscribers combined, including major players like AT&T, Verizon, Vodafone, Rakuten, Google, and American Tower.
Retail Trader Sentiment Shows Optimism
Despite the setback, retail traders on platforms appeared largely unfazed by the satellite’s orbit placement issue. Retail sentiment on the platform rose to “extremely bullish” from “bullish” over the past week, amid a nearly 560% surge in 24-hour message volume.
One user weighed in, explaining that an off-nominal orbit means a spacecraft is operating outside planned parameters—such as underburns or overburns—but still within safety tolerances to allow for mission success or recovery. “It does not mean it is in the target orbit, but rather a ‘bounded’ trajectory near it, or an expected deviation that engineers can correct.”
Another user added, “The highest probability scenario here is that the sat loses 3-12 months of lifespan correcting its path. The lowest probability scenario is that the sat is completely useless. The SP overcorrection might suck, but I’m extremely optimistic that this is a slight hiccup until we hear more.”
ASTS Stock Performance
Despite the recent setback, ASTS stock has surged 266% over the past year, reflecting investor confidence in the company’s long-term vision and capabilities.
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