Shares of AST SpaceMobile plunged the most since February after Blue Origin's New Glenn rocket failed to place the company's BlueBird 7 satellite into its intended orbit during Sunday morning's launch.

Shortly after the successful launch of New Glenn from the launchpad at Cape Canaveral, Florida, early Sunday, Blue Origin said the rocket's payload, the BlueBird 7 satellite, was placed into an "off-nominal orbit."

In other words, "off-nominal orbit" means that the BlueBird 7 satellite is not at the correct altitude, speed, or trajectory it was supposed to be in.

AST SpaceMobile published a statement saying the satellite's incorrect placement is "too low to sustain operations" and that it would be deorbited in the near term.

However, New Glenn's first stage successfully returned to Earth and landed on a barge in the Atlantic Ocean for the first time, marking a major accomplishment for Blue Origin's new era of reusable rockets.

William Blair analyst Louie DiPalma told clients, "AST gained experience integrating its satellite with New Glenn and working with the Blue Origin team," adding, "The silver lining is that there was only one satellite on board, whereas future New Glenn launches may have as many as eight of AST's BlueBirds."

AST SpaceMobile shares cratered in premarket trading in New York, down as much as 14%. If premarket declines hold into the cash session, this would mark the worst session since February 12's 15% drop. The decline would wipe out much of this year's year-to-date gains of about 18% as of Friday's close.

The good news is that two U.S. private companies, SpaceX and Blue Origin, have achieved reusable rockets, something China's entire aerospace industry cannot.