Bezos Says Blue Origin Is Back on Track — Here’s What That Means for Space Stocks

TLDR

• Blue Origin’s New Glenn rocket exploded on the launch pad at Cape Canaveral in late May 2026, damaging infrastructure.
• Jeff Bezos posted on X that there is a “solid path forward” to launch again in 2026, just one week after the explosion.
• AST SpaceMobile stock dropped 15% after the incident and remains down about $26 from pre-explosion levels.
• Karman, a Blue Origin supplier, saw its stock fall 13% to $57.50 and has stayed near those levels.
• Both companies say their business outlooks are largely unchanged, with AST still planning a commercial service launch in early 2027.

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Blue Origin’s New Glenn rocket exploded on a launch pad at Cape Canaveral, Florida in late May 2026. The accident damaged launch infrastructure and sent shockwaves through space-related stocks.

Despite the setback, Amazon and Blue Origin founder Jeff Bezos posted on X just one week later saying it’s a “24/7 operation with a solid path forward to launch this year.” Blue Origin CEO David Limp echoed that optimism earlier in the week.

How the Explosion Hit Space Stocks

The day after the explosion, AST SpaceMobile stock fell 15%. Shares are still down about $26 from pre-explosion levels, trading around $107.

AST SpaceMobile, Inc., ASTS

Karman, which supplies parts to the New Glenn launch system, fell 13% to $57.50. It has stayed near that level since the incident.

Amazon shares also dropped about 1% following the news.

Westwood chief investment officer Adrian Helfort described the explosion as “a pretty big setback, an under-appreciated setback.” He pointed out that having only one reliable launch provider creates risk. “SpaceX is great, but you can’t have just one supplier,” he said.

Companies Say Business Plans Stay on Track

Despite the stock declines, both AST SpaceMobile and Karman say the explosion has not changed their business outlooks.

AST announced at the William Blair 46th Annual Growth Stock Conference this week that it still expects to launch its beta direct-to-device service later in 2026. A commercial service launch is still planned for the first half of 2027. The company also announced it was authorized for 10×10 spectrum usage in Brazil.

Karman CEO Jon Rambeau said the company’s space segment growth should be unaffected by the mishap. He said Karman already has more than 90% visibility to hit the midpoint of its full-year revenue guidance, which calls for 25% organic growth.

William Blair analyst Louie DiPalma noted that Bezos’ optimism is positive for space stocks. He highlighted that Blue Origin is AST’s main launch partner and that Karman supplies the New Glenn system with proprietary products including aerodynamic interstage assemblies and panel protection systems. William Blair estimates New Glenn represents about 5% of Karman’s business.

New Glenn is a large reusable rocket capable of carrying 45 metric tons into low Earth orbit. By comparison, SpaceX’s Falcon 9 carries about 23 metric tons.

Space stocks broadly have been rising lately. AST shares are still up 68% over the past month. Rocket Lab stock is up 52% over the same period, and Firefly shares are up 31%.

The sector has been building ahead of SpaceX’s expected IPO, which is set to price this coming week at a valuation of around $1.8 trillion.