ASTS Stock Climbs Overnight: Retail Bulls Don't Blink Even As Blue Origin Confirms Engine Failure Behind BlueBird-7 Miss

• Blue Origin CEO Dave Limp said early mission data points to insufficient thrust from a BE-3U engine during the second GS2 burn.
• He added that an investigation is underway under the oversight of the Federal Aviation Administration.
• BofA called the launch outcome a “negative shock” but said it does not fundamentally change the company’s business.

Retail traders following AST SpaceMobile (ASTS) are not throwing in the towel yet, even as the stock extended losses on Monday after launch provider Blue Origin confirmed an upper-stage engine shortfall caused the BlueBird-7 orbit miss, while emphasizing that multiple future launches with the company are still expected.

ASTS stock fell for a second straight session on Monday, dropping over 5% to close at $81. However, the stock was up nearly 2.5% in overnight trading.

Blue Origin Flags Engine Issue Behind BlueBird-7 Orbit Miss

ASTS shares came under pressure after its BlueBird-7 satellite failed to reach its intended orbit over the weekend and will now de-orbit rather than join the company’s expanding space-to-smartphone broadband constellation.

Late Monday, Blue Origin CEO Dave Limp said on X that early mission data points to insufficient thrust from one of the BE-3U engines during the second GS2 burn of the New Glenn-3 launch.

“While we are pleased with the nominal booster recovery, we clearly didn’t deliver the mission our customer wanted, and our team expects,” Limp said. Blue Origin said it is leading an anomaly investigation with oversight from the Federal Aviation Administration to determine the cause and support a return to flight operations.

Despite the setback, Limp signaled continued cooperation between the companies. “We have been in steady communication with the team at AST SpaceMobile, we appreciate their partnership, and we’re looking forward to many flights together.”

AST SpaceMobile said BlueBird-7 successfully separated from the launch vehicle and powered on as expected, but the upper stage placed it at an altitude too low to sustain operations using onboard propulsion. CEO Abel Avellan confirmed the issue originated with the rocket’s second stage.

The company said the satellite’s $23 million cost is expected to be recovered under its insurance policy. 

ASTS Roadmap Intact After BlueBird-7 Orbit Miss

BlueBird-7 would have been the eighth satellite deployed into low Earth orbit as part of AST SpaceMobile’s direct-to-device broadband network rollout. Production remains underway through BlueBird-32, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within about 30 days. The company continues targeting roughly 45 satellites in orbit this year.

The satellites are part of the firm’s next-gen Block-2 platform designed to deliver cellular broadband connectivity directly to standard smartphones. Each spacecraft carries phased-array antennas spanning about 2,400 square feet and is expected to support full 4G and 5G voice, data and video services with peak speeds exceeding 120 Mbps.

AST SpaceMobile has agreements with more than 50 mobile network operators representing nearly 3 billion subscribers combined, including AT&T, Verizon, Vodafone, Rakuten, Google and American Tower.

Launch Failure Raises Satellite Target Risk

Bank of America Securities (BofA) called the launch outcome “a negative shock,” but said it “does not fundamentally change AST SpaceMobile’s business.” However, the firm warned the setback could affect the company’s revised target of 45 satellites in orbit by the end of 2026. The firm maintained a ‘Neutral’ rating and a $100 price target on ASTS.

Separately, Clear Street lowered its price target on ASTS shares to $115 from $137 while maintaining a ‘Buy’ rating after the New Glenn-3 second-stage malfunction deployed BlueBird-7 into a lower-than-planned orbit. The firm also said it now expects delays to the company’s target of deploying 45 to 60 satellites by the end of this year.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS was ‘extremely bullish’ amid over a 440% jump in message volumes over the past week. 

One user said, “Congrats to those who bought the dip last night and this am - a gift!!! This will be back in the triple digits before we know it! “

Another user expects the stock to hit over $100 by the end of the week.

ASTS stock has surged nearly 250% over the past year. 

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