Late last week, a Blue Origin rocket exploded at Cape Canaveral just days before it was due to launch a batch of Amazon.com Inc’s (NASDAQ: AMZN) low-Earth-orbit broadband satellites, seriously damaging the launchpad in the process. The market reaction in the days since has been predictable.
Even as the broader indices have notched fresh highs, Amazon’s stock has been selling off, and the narrative around its satellite ambitions has taken a hit. The more important question, though, is whether the market's reaction was proportionate to what the explosion actually means for Amazon's prospects, and there’s a strong argument that the answer is no.
