Astra Space (NASDAQ:ASTR) stock is tumbling 24% in early trading after the company’s rocket did not successfully attain orbit above the Earth yesterday.
Astra’s launch vehicle “suffered a second-stage failure” soon after it blasted off. The “upper-stage engine” of the rocket “shut down early,” explained an Astra executive.
As a result of the failure, two NASA satellites were destroyed. The company was supposed to bring the satellites, which were going to analyze hurricanes, to space.
Before yesterday’s incident, Astra had been slated to undertake a total of three missions for NASA that were going to bring six satellites to space. Under the original plan, all six of the satellites were going to provide information about hurricanes. Astra was slated to be paid nearly $8 million for the missions.
In February, Astra similarly did not successfully launch four NASA payloads. In that case, Astra’s rocket also was unable to complete its second stage.
After holding talks with Astra’s management in April, Deutsche Bank cut its price target on ASTR stock to $6 from $7 but kept a “buy” rating on the name. According to the firm, Astra “clearly made progress on several fronts this year,” as it was able to launch “its first commercial payload” and received a major contract from a private company. Deutsche Bank expected Astra’s NASA mission to go smoothly this year.
ASTR Stock: Q1 Results Focus on Growth
In the first quarter, Astra generated revenue of $3.9 million. It reported an adjusted EBITDA loss of $47.5 million.
“[This has been] a quarter of accelerating investment, customer adoption of our space technology products and growth in our customer pipeline,” CEO Chris Kemp said.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.