AST SpaceMobile stock falls after Blue Origin New Glenn explosion raises launch concerns

Deutsche Bank downgraded AST SpaceMobile (NASDAQ:ASTS) to a Hold rating and cut its price target to $106, citing the catastrophic explosion of Blue Origin’s New Glenn rocket during a static‑fire test at Cape Canaveral. Analysts said the incident could damage the launch pad, delay future New Glenn flights and jeopardise AST SpaceMobile’s plan to launch 45 BlueBird satellites by the end of 2026.

Following the downgrade, AST SpaceMobile shares dropped 14.8% on the day, closing at $113.41 and slipping further in after‑hours trading. The company still holds a $3.5 billion cash reserve and has scheduled upcoming launches of its next satellites on SpaceX’s Falcon 9, which may mitigate the immediate launch‑risk exposure.

The market reaction reflects heightened investor concern over the company’s reliance on Blue Origin for launch capacity, the recent loss of a BlueBird‑7 satellite after a prior New Glenn failure, and the broader impact on the direct‑to‑device satellite communications sector.