Key facts
- Blue Origin's New Glenn rocket exploded on the launch pad at Cape Canaveral in late May 2026.
- The explosion damaged launch infrastructure.
- Jeff Bezos stated there is a "solid path forward" to launch again in 2026.
- AST SpaceMobile stock fell 15% after the incident.
- Karman stock fell 13% after the incident.
- Amazon shares dropped about 1% following the news.
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, which remains down about $26 from pre-explosion levels. Karman, a supplier to the New Glenn system, saw its stock fall 13% and has stayed near that level. 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. 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. Space stocks have generally been rising, with anticipation building for SpaceX's expected IPO.