What Happened?
Shares of satellite communications provider Globalstar (NASDAQ: GSAT) jumped 16.8% in the afternoon session after the stock's positive momentum continued as the company reported record third-quarter revenue that surpassed estimates and its partner, Apple, revealed plans to enhance iPhone satellite features. The satellite communications firm posted record revenue of $73.8 million for the third quarter, which led B. Riley to raise its price target on the stock. Adding to the positive news, Apple, a key partner, announced plans to expand its satellite capabilities using Globalstar's network. These new features included satellite-enhanced navigation within Apple Maps and the ability to send photos through iMessage without a cellular signal. Furthermore, Globalstar announced a major expansion of its ground infrastructure in Brazil, installing eight new antennas as part of a global upgrade. This series of positive developments boosted investor confidence, sending the stock to a new 52-week high.
Is now the time to buy Globalstar? Access our full analysis report here.
What Is The Market Telling Us
Globalstar’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. But moves this big are rare even for Globalstar and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 3.4% on the news that markets became increasingly wary of high valuations following a significant AI-driven rally.
The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector. Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years. Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.
Globalstar is up 86.3% since the beginning of the year, and at $59.06 per share, has set a new 52-week high. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $11,895.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
