What Happened?
Shares of satellite communications provider Globalstar (NASDAQ: GSAT) jumped 2.6% in the afternoon session after sentiment in the tech space improved, fueled by significant developments from OpenAI.
OpenAI's valuation reportedly soared to $500 billion after a share sale, making it the world's most valuable startup and reinforcing investor confidence in the AI boom. Further fueling the rally, OpenAI announced partnerships with South Korean chipmakers SK Hynix and Samsung for its ambitious 'Stargate' project, a massive undertaking aimed at building AI infrastructure. This news created a positive ripple effect across the tech landscape, particularly for semiconductor companies, as it signals sustained, large-scale investment in the hardware that powers AI. The developments have bolstered the entire sector, pushing technology stocks to new records.
After the initial pop the shares cooled down to $40.41, up 3.2% from previous close.
Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Globalstar’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 5.3% on the news that investor optimism grew around its strategic bet on XCOM's Radio Access Network (RAN) technology and its potential as a key growth driver.
Globalstar's XCOM RAN technology promises to deliver at least four times the capacity of baseline 5G systems and is being evaluated for defense and tactical use. The company has already demonstrated its potential by achieving a successful 5G data call over its n53 spectrum.
Adding to the positive outlook, Globalstar announced plans to expand its network with the new HIBLEO-XL-1 satellite system, preparing for the next era of mobile satellite connectivity. This positive momentum is reflected in analyst sentiment, with earnings estimates for 2025 and 2026 being revised upwards, contributing to a "Strong Buy" consensus rating.
Globalstar is up 27.1% since the beginning of the year, and at $40.41 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 $8,856.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
