What Happened?
Shares of satellite communications provider Globalstar (NASDAQ: GSAT) jumped 8% in the afternoon session after reports surfaced that the company's chair had discussed a potential sale of the company for over $10 billion.
The stock moved higher following these rumors. Adding to the positive sentiment, Globalstar also announced an expansion of its ground infrastructure. The company confirmed the deployment of new ground station equipment in Talkeetna, Alaska, and an expansion of its existing station in Wasilla. These upgrades were part of a larger global plan to add up to 90 new tracking antennas to support its third-generation mobile satellite system, representing a significant investment in its network's capacity and future.
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What Is The Market Telling Us
Globalstar’s shares are extremely volatile and have had 43 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 about 23 hours ago when the stock dropped 8.9% on the news that new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment.
A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines.
Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.
Globalstar is up 42.6% since the beginning of the year, and at $45.35 per share, it is trading close to its 52-week high of $47.06 from October 2025. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $9,690.
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