Blue Origin Launch Botches AST Satellite Placement, Stock Tanks

Blue Origin just handed AST SpaceMobile a very bad Monday. The Jeff Bezos-led rocket company's flagship New Glenn vehicle failed to place an AST BlueBird satellite into its intended orbit during a recent launch.

The fallout was immediate and brutal. AST SpaceMobile shares cratered 14% in pre-market trading as investors processed the botched deployment. AST SpaceMobile, which is building a satellite networking constellation, depends on precise orbital placement for its BlueBird birds to function as designed.

For Blue Origin, it's another blow to credibility as the company tries to establish New Glenn as a reliable heavy-lift launch vehicle in an increasingly competitive market. For AST SpaceMobile, it's a costly setback — both in stock value and in timeline for getting its satellite network operational.

Neither company has detailed recovery plans yet.