MW This space stock is rising as Blue Origin predicts quick recovery from big explosion

By William Gavin

Blue Origin says it should be able to launch its New Glenn rocket before the end of 2026, which could help AST SpaceMobile

Blue Origin's New Glenn rocket exploded on the launchpad during a test late last month.

Jeff Bezos's space company now says it expects its New Glenn rocket to return to flight within six months, just days after a fiery setback.

Last Thursday, Blue Origin was conducting a hot-fire test of a New Glenn vehicle ahead of its planned fourth launch. The rocket exploded on the launchpad at Cape Canaveral, Fla., creating a shockwave felt as far as 135 miles away from Launch Complex 36.

It appeared to be a major setback, because Blue Origin currently has just one New Glenn launchpad. It took more than a year for SpaceX to resume flights from a launchpad at Cape Canaveral after a preflight explosion destroyed a Falcon 9 rocket in 2016.

"Even if you're moving at, you know, a pretty quick pace, that's going to take some serious time," NASA Administrator Jared Isaacman told CNBC on Monday. He added later on X that NASA will do "all we can" to help accelerate Blue Origin's recovery.

Blue Origin, with NASA's assistance, is still investigating last week's incident. But the company thinks it will be able to return to launch fairly quickly.

In a statement on Monday, Blue Origin CEO Dave Limp said that the site's propellant farm and its oxygen, liquid hydrogen and liquid natural gas tanks are all "in good shape." That's a good sign, he said, because replacing any of those systems could take a while.

The launch complex's water tower is "also good," according to Limp, while its big support tower is damaged but repairable. Additionally, the "Never Tell Me the Odds" booster and three second-stage vehicles that were on site also appear to be in good shape, he said.

"We will fly again before the end of this year. Gradatim Ferociter," Limp wrote on X, referencing Blue Origin's motto, which means "step by step, ferociously." That motto, and the company's approach, has led some to call Blue Origin the tortoise to SpaceX's hare.

That resumption of flights will likely be welcome for NASA, which is leaning on Blue Origin to carry out its own lunar ambitions. It would also be good for Amazon.com (AMZN) and AST SpaceMobile (ASTS), both of which have contracted with New Glenn to help build out their satellite constellations as they seek to rival SpaceX's Starlink satellite-internet business.

See more: SpaceX says it will reserve 5% of its IPO shares for staff, friends and family

AST shares rose 3% in early trading on Tuesday, rebounding after falling 20% in the days since the Blue Origin incident. The satellite-to-mobile connectivity company needs to launch dozens of satellites to orbit to begin providing commercial services.

William Blair's Louie DiPalma said in a note to clients last week that the setback would likely delay the full deployment of AST's satellite constellation. Deutsche Bank analysts on Monday lowered their rating on AST's stock to hold from buy and cut their price target.

In addition to AST, several other space stocks fell in the wake of the Blue Origin incident. The sector is also dealing with volatility ahead of SpaceX's initial public offering, which is driving interest in space companies.

Shares of the Procure Space exchange-traded fund UFO fell nearly 10% through Monday but were up slightly in early trading Tuesday. Shares were up 58.6% on the year through Monday's close, according to FactSet.

"If people were looking to sell, OK, here's a negative headline for sure," ProcureAM CEO Andrew Chanin told MarketWatch last week about the Blue Origin incident. "But this is far from a structural contagion of any sort for the overall space economy."

-William Gavin

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June 02, 2026 10:37 ET (14:37 GMT)

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