Key facts
- Blue Origin's New Glenn rocket exploded on the launch pad in May 2026.
- The explosion damaged launch infrastructure at Cape Canaveral.
- AST SpaceMobile stock fell 15% and Karman stock fell 13% following the incident.
- Amazon shares dropped about 1% after the explosion.
- Blue Origin aims to resume launches in 2026.
- NASA is reportedly pushing Blue Origin to consider SpaceX for its Blue Moon lander.
Blue Origin's New Glenn rocket exploded on a launch pad at Cape Canaveral, Florida, in late May 2026, damaging launch infrastructure and impacting related stocks. Despite the setback, Blue Origin founder Jeff Bezos posted on X that there is a 'solid path forward' to launch again in 2026. Blue Origin CEO David Limp also expressed optimism. The explosion led to a 15% drop in AST SpaceMobile stock and a 13% fall in Karman stock, a supplier to the New Glenn system. Amazon shares also experienced a slight decline. Westwood chief investment officer Adrian Helfort noted the explosion as a significant setback, emphasizing the risk of having only one reliable launch provider. However, both AST SpaceMobile and Karman maintain that their business outlooks are unchanged. AST plans to launch its beta direct-to-device service later in 2026 and commercial service in early 2027, while Karman expects its space segment growth to be unaffected. William Blair analyst Louie DiPalma highlighted Bezos' optimism as positive for space stocks, noting Blue Origin is AST's main launch partner and Karman supplies critical components for New Glenn. New Glenn has a larger payload capacity than SpaceX's Falcon 9. Separately, the Canadian government is investing significantly in sovereign launch capabilities, including a lease for Spaceport Nova Scotia with Maritime Launch Services. The Canadian federal government committed 182.6 million Canadian dollars ($131 million) over three years to establish a sovereign launch program and 200 million Canadian dollars ($144 million) to lease a dedicated launch pad in Nova Scotia.