GOGO Should I Buy
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Gogo Inc. (GOGO) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The technical indicators are bearish, the financial performance shows declining profitability, and analysts have downgraded the stock recently. While insider buying is a positive sign, it is outweighed by the lack of strong growth prospects and competitive pressures. Holding off on investing in GOGO is recommended until clearer positive signals emerge.
The technical indicators for GOGO are bearish. The MACD is below zero and negatively contracting, the RSI is neutral at 33.065, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 3.914), but there is no clear upward momentum. Additionally, the stock has a 70% chance of declining in the next week (-0.79%) and minimal short-term upside potential.
Insider buying has increased significantly, up 418.19% over the last month, which could indicate confidence from company insiders.
Analysts have downgraded the stock recently, citing competitive pressures from Starlink and a challenging transition period for Gogo's products. Additionally, the company's financial performance shows declining profitability, with net income and EPS both dropping significantly YoY in Q3 2025.
In Q3 2025, revenue increased by 122.41% YoY to $223.59M, but net income dropped to -$1.93M (-118.16% YoY), and EPS fell to -0.01 (-112.50% YoY). Gross margin also declined significantly to 38.35%, down 38.12% YoY, indicating profitability challenges despite revenue growth.
Recent analyst actions have been negative. Morgan Stanley lowered its price target from $15 to $8, maintaining an Equal Weight rating, and William Blair downgraded the stock to Market Perform from Outperform due to competitive pressures and elevated debt levels.
