ASTS Stock Slumps Overnight: BlueBird-7 Orbit Failure Forces Satellite Exit From Network Buildout

• ASTS stock had already fallen 10% last week amid repeated timeline adjustments to the BlueBird-7 launch.
• The satellite separated and powered on successfully, but New Glenn-3’s second stage placed it into a lower-than-planned orbit.
• The company still continues to target about 45 satellites in orbit this year.

Shares of AST SpaceMobile, Inc. (ASTS) tumbled 15% in overnight trading late Sunday after the company confirmed its BlueBird-7 satellite failed to reach its intended orbit during launch and will now de-orbit instead of joining its expanding space-to-smartphone broadband constellation.

ASTS stock had already been under pressure ahead of the launch outcome, ending last week 10% lower after snapping a two-week winning streak amid repeated timeline adjustments to the BlueBird-7 launch.

BlueBird-7 Misses Intended Orbit

The spacecraft successfully separated from the launch vehicle and powered on as expected, but the upper stage of Blue Origin’s New Glenn-3 mission placed it at an altitude too low to sustain operations using onboard thrusters. AST SpaceMobile said the satellite’s cost is expected to be recovered under its insurance policy.

CEO Abel Avellan said on X 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.

AST SpaceMobile said it remains in production through BlueBird-32, with BlueBird-8 through BlueBird-10 expected to be ready for shipment 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. 

The 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, with expected 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 AT&T, Verizon, Vodafone, Rakuten, Google, and American Tower.

How Do Retail Traders Feel About ASTS?

Traders on Stocktwits appeared largely unfazed by the satellite’s orbit placement issue, with retail sentiment on the platform rising to “extremely bullish” from “bullish” over the past week amid a nearly 560% surge in 24-hour message volume.

One user weighed in saying, “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 said, “Highest probability scenario here is that the sat loses 3-12months of lifespan correcting its path. 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 has surged 266% over the past year.

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