What Happened?
Shares of satellite communications provider Globalstar (NASDAQ: GSAT) jumped 3.5% in the morning session after the company announced it has started construction to expand its ground station in Singapore. The satellite communications company announced that construction has started on an expansion of its ground station in Singapore. This project will add two new 6-meter tracking antennas to support its third-generation C-3 mobile satellite system (MSS). The development builds upon a 17-year partnership with Singtel, which hosts the facilities, and is expected to enable expanded service offerings across Southeast Asia. This operational news follows a strong second-quarter financial report from August 8, where Globalstar beat revenue expectations and reported a significant increase in net income, returning to profitability. The combination of strong recent performance and strategic expansion appears to be boosting investor confidence.
After the initial pop the shares cooled down to $28.48, up 0.7% from previous close.
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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 7 days ago when the stock gained 3.1% on the news that the company and Parsons Corporation announced a successful proof of concept for a joint commercial satellite solution. This collaboration integrated Globalstar's Low Earth Orbit (LEO) satellite capabilities with advanced software from Parsons, a leader in national security solutions. The company stated this successful test marked a significant step toward the commercial availability of their joint product. This development paved the way for new commercial satellite solutions, signaling progress in the company's technological and business partnerships.
Globalstar is down 10.4% since the beginning of the year, and at $28.48 per share, it is trading 17.1% below its 52-week high of $34.35 from December 2024. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $5,048.
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