Analysis of Investment Prospects for Globalstar Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Yahoo Finance
- Market Misinterpretation of Acquisition Structure: The acquisition agreement between Globalstar and Amazon allows for up to 40% of total consideration to be paid in cash, with the remainder in Amazon stock, a mixed payment structure often misread by the market as a fixed $90 outcome, leading to a conservative discount on its value.
- Potential Value Support: Even under conservative assumptions, the implied blended value of cash and Amazon equity remains above the current trading price, indicating that the perceived downside for GSAT is more narrative-driven than mechanical, with deal terms providing structural support for downside protection.
- Gradual Uncertainty Reduction: As information flow improves through regulatory filings and proration mechanics become clearer, the valuation spread for GSAT is expected to compress, allowing investors to gain clearer payout probabilities and enhancing the stock's attractiveness.
- Comparison with Other Investment Opportunities: While GSAT shows some investment potential, it may offer lower return prospects compared to certain AI stocks, which are viewed as more attractive in the short term, especially those considered to have 10,000% upside potential.
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Analyst Views on GSAT
Wall Street analysts forecast GSAT stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 80.010
Low
60.00
Averages
67.00
High
75.00
Current: 80.010
Low
60.00
Averages
67.00
High
75.00
About GSAT
Globalstar, Inc. is a global telecommunications provider. The Company provides mobile satellite services, including voice and data communications services to retail, business and governmental customers, as well as wholesale satellite capacity services. It also offers these services over its network of in-orbit satellites and ground stations. Its low earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, it delivers satellite and terrestrial connectivity solutions. Its comprehensive connectivity ecosystem includes a software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN and trusted GPS messengers Saved by SPOT for safety and personal communication for business and enterprise applications. The Company serves business, enterprise, and consumer markets across the globe. It supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Investment Prospects for Globalstar Stock
- Market Misinterpretation of Acquisition Structure: The acquisition agreement between Globalstar and Amazon allows for up to 40% of total consideration to be paid in cash, with the remainder in Amazon stock, a mixed payment structure often misread by the market as a fixed $90 outcome, leading to a conservative discount on its value.
- Potential Value Support: Even under conservative assumptions, the implied blended value of cash and Amazon equity remains above the current trading price, indicating that the perceived downside for GSAT is more narrative-driven than mechanical, with deal terms providing structural support for downside protection.
- Gradual Uncertainty Reduction: As information flow improves through regulatory filings and proration mechanics become clearer, the valuation spread for GSAT is expected to compress, allowing investors to gain clearer payout probabilities and enhancing the stock's attractiveness.
- Comparison with Other Investment Opportunities: While GSAT shows some investment potential, it may offer lower return prospects compared to certain AI stocks, which are viewed as more attractive in the short term, especially those considered to have 10,000% upside potential.
See More
AST SpaceMobile Shares Drop 15.53% Amid Competition Concerns
- Stock Volatility: AST SpaceMobile's shares closed at $82.41 on Friday, down 15.53%, reflecting investor concerns over new competition and profit-taking after strong recent gains.
- Surge in Trading Volume: The trading volume reached 54.9 million shares, approximately 172% above the three-month average, indicating heightened market interest likely influenced by the SpaceX IPO.
- Increased Competitive Pressure: With SpaceX's Starlink business entering the market, AST SpaceMobile faces intensified competition, prompting investors to reassess its future profitability and market position.
- Long-Term Growth Potential: Despite a 744% increase in stock price since its 2019 IPO, AST SpaceMobile still requires significant capital expenditure and satellite deployment to achieve profitability, leading to cautious investor sentiment regarding its future prospects.
See More
AST SpaceMobile Shares Drop 15.53% Amid Competition Concerns
- Stock Volatility: AST SpaceMobile closed at $82.41 on Friday, down 15.53%, reflecting profit-taking by investors after strong recent gains and lingering concerns about new competition in the market.
- Surge in Trading Volume: The trading volume reached 54.3 million shares, about 172% above its three-month average of 20 million shares, indicating heightened market interest in the company's future performance.
- Increased Competitive Pressure: Following the successful IPO of SpaceX, AST SpaceMobile faces direct competition from Starlink, prompting investors to reassess its market valuation and potentially leading to capital outflows.
- Uncertain Profitability Outlook: Although AST SpaceMobile's stock has surged 744% since its 2019 IPO, the company still requires significant capital expenditures and satellite deployments to achieve profitability, leading investors to adopt a cautious stance regarding its future earnings potential.
See More
Amazon Acquires 20% Stake in Globalstar for $11.6 Billion
- Acquisition of Globalstar Stake: Amazon announced its acquisition of Apple's 20% stake in Globalstar for $11.6 billion, which will enhance its position in the satellite communications market and provide more reliable emergency and connectivity services for millions of iPhone users.
- Investment Expansion Plans: Amazon plans to invest in constellation expansion and technical enhancements to strengthen the capabilities of the 1.6/2.4 GHz Mobile Satellite Services spectrum, thereby improving service quality in areas lacking traditional cellular coverage.
- Analyst Price Target Increase: Truist raised Amazon's price target from $310 to $320 while maintaining a Buy rating, reflecting optimism about future revenue growth from its cloud computing business, particularly due to its $100 billion partnerships with Anthropic and OpenAI.
- AI Business Potential: Analysts suggest that the market may be underestimating Amazon's future capital expenditures and significant revenue growth from its expanding artificial intelligence-related business opportunities, indicating that the company's expansion in AI could yield substantial long-term benefits.
See More
Amazon's Strategic Acquisition of Globalstar and Its Implications
- Acquisition Context: Amazon's acquisition of Globalstar at $90 per share integrates its satellite support for iPhone emergency SOS, expected to enhance Amazon's competitiveness in direct-to-device satellite communications and expand its IoT market presence.
- Financial Performance: Globalstar's Q1 2026 revenue rose 17% to $70 million, with wholesale capacity services increasing from $37 million to $46 million, and operating income soaring 196% to $8.17 million, indicating strong market demand and profitability.
- Market Outlook: The number of global IoT connected devices is projected to grow from 22 billion in 2025 to 47 billion by 2031, with the U.S. Space Force investing $9.8 billion in satellite communications, highlighting significant growth potential in the sector and attracting investor interest.
- Risks and Opportunities: Despite the acquisition's risk of up to $110 million in clawback for operational milestones, Globalstar's stock has surged 350% over the past year, reflecting market confidence in its long-term strategy, and investors should monitor its role in Amazon's future developments.
See More
Market Update: Stocks Steady Amid Oil Price Drop
- Market Performance Review: Despite falling oil prices, the S&P 500 and Nasdaq Composite remained steady in Friday's trading, with the S&P 500 up 5% and Nasdaq over 8% in May, reflecting the positive impact of a strong rally in AI stocks on the market.
- Amazon Satellite Plans Hit Snag: Amazon's Blue Origin experienced a rocket explosion during a launch test in Florida, with no satellites on board; however, this incident could delay the deployment of Amazon's planned low-Earth orbit broadband satellite network, impacting its competition with SpaceX's Starlink.
- Investor Focus: Amazon has deployed approximately 240 satellites over the past year, and while partnerships with multiple launch providers mitigate the risk of a single launch failure, potential delays in future launches could complicate the timeline for its commercial service, expected to start in Q3.
- M&A Update: An FCC filing revealed details of Amazon's acquisition of Globalstar, including the transfer of Apple's 20% stake, marking a significant step in Amazon's strategy to expand its satellite offerings into direct-to-device services.
See More
Analysis of Investment Prospects for Globalstar Stock
- Market Misinterpretation of Acquisition Structure: The acquisition agreement between Globalstar and Amazon allows for up to 40% of total consideration to be paid in cash, with the remainder in Amazon stock, a mixed payment structure often misread by the market as a fixed $90 outcome, leading to a conservative discount on its value.
- Potential Value Support: Even under conservative assumptions, the implied blended value of cash and Amazon equity remains above the current trading price, indicating that the perceived downside for GSAT is more narrative-driven than mechanical, with deal terms providing structural support for downside protection.
- Gradual Uncertainty Reduction: As information flow improves through regulatory filings and proration mechanics become clearer, the valuation spread for GSAT is expected to compress, allowing investors to gain clearer payout probabilities and enhancing the stock's attractiveness.
- Comparison with Other Investment Opportunities: While GSAT shows some investment potential, it may offer lower return prospects compared to certain AI stocks, which are viewed as more attractive in the short term, especially those considered to have 10,000% upside potential.
See More
AST SpaceMobile Shares Drop 15.53% Amid Competition Concerns
- Stock Volatility: AST SpaceMobile's shares closed at $82.41 on Friday, down 15.53%, reflecting investor concerns over new competition and profit-taking after strong recent gains.
- Surge in Trading Volume: The trading volume reached 54.9 million shares, approximately 172% above the three-month average, indicating heightened market interest likely influenced by the SpaceX IPO.
- Increased Competitive Pressure: With SpaceX's Starlink business entering the market, AST SpaceMobile faces intensified competition, prompting investors to reassess its future profitability and market position.
- Long-Term Growth Potential: Despite a 744% increase in stock price since its 2019 IPO, AST SpaceMobile still requires significant capital expenditure and satellite deployment to achieve profitability, leading to cautious investor sentiment regarding its future prospects.
See More
AST SpaceMobile Shares Drop 15.53% Amid Competition Concerns
- Stock Volatility: AST SpaceMobile closed at $82.41 on Friday, down 15.53%, reflecting profit-taking by investors after strong recent gains and lingering concerns about new competition in the market.
- Surge in Trading Volume: The trading volume reached 54.3 million shares, about 172% above its three-month average of 20 million shares, indicating heightened market interest in the company's future performance.
- Increased Competitive Pressure: Following the successful IPO of SpaceX, AST SpaceMobile faces direct competition from Starlink, prompting investors to reassess its market valuation and potentially leading to capital outflows.
- Uncertain Profitability Outlook: Although AST SpaceMobile's stock has surged 744% since its 2019 IPO, the company still requires significant capital expenditures and satellite deployments to achieve profitability, leading investors to adopt a cautious stance regarding its future earnings potential.
See More
Amazon Acquires 20% Stake in Globalstar for $11.6 Billion
- Acquisition of Globalstar Stake: Amazon announced its acquisition of Apple's 20% stake in Globalstar for $11.6 billion, which will enhance its position in the satellite communications market and provide more reliable emergency and connectivity services for millions of iPhone users.
- Investment Expansion Plans: Amazon plans to invest in constellation expansion and technical enhancements to strengthen the capabilities of the 1.6/2.4 GHz Mobile Satellite Services spectrum, thereby improving service quality in areas lacking traditional cellular coverage.
- Analyst Price Target Increase: Truist raised Amazon's price target from $310 to $320 while maintaining a Buy rating, reflecting optimism about future revenue growth from its cloud computing business, particularly due to its $100 billion partnerships with Anthropic and OpenAI.
- AI Business Potential: Analysts suggest that the market may be underestimating Amazon's future capital expenditures and significant revenue growth from its expanding artificial intelligence-related business opportunities, indicating that the company's expansion in AI could yield substantial long-term benefits.
See More
Amazon's Strategic Acquisition of Globalstar and Its Implications
- Acquisition Context: Amazon's acquisition of Globalstar at $90 per share integrates its satellite support for iPhone emergency SOS, expected to enhance Amazon's competitiveness in direct-to-device satellite communications and expand its IoT market presence.
- Financial Performance: Globalstar's Q1 2026 revenue rose 17% to $70 million, with wholesale capacity services increasing from $37 million to $46 million, and operating income soaring 196% to $8.17 million, indicating strong market demand and profitability.
- Market Outlook: The number of global IoT connected devices is projected to grow from 22 billion in 2025 to 47 billion by 2031, with the U.S. Space Force investing $9.8 billion in satellite communications, highlighting significant growth potential in the sector and attracting investor interest.
- Risks and Opportunities: Despite the acquisition's risk of up to $110 million in clawback for operational milestones, Globalstar's stock has surged 350% over the past year, reflecting market confidence in its long-term strategy, and investors should monitor its role in Amazon's future developments.
See More
Market Update: Stocks Steady Amid Oil Price Drop
- Market Performance Review: Despite falling oil prices, the S&P 500 and Nasdaq Composite remained steady in Friday's trading, with the S&P 500 up 5% and Nasdaq over 8% in May, reflecting the positive impact of a strong rally in AI stocks on the market.
- Amazon Satellite Plans Hit Snag: Amazon's Blue Origin experienced a rocket explosion during a launch test in Florida, with no satellites on board; however, this incident could delay the deployment of Amazon's planned low-Earth orbit broadband satellite network, impacting its competition with SpaceX's Starlink.
- Investor Focus: Amazon has deployed approximately 240 satellites over the past year, and while partnerships with multiple launch providers mitigate the risk of a single launch failure, potential delays in future launches could complicate the timeline for its commercial service, expected to start in Q3.
- M&A Update: An FCC filing revealed details of Amazon's acquisition of Globalstar, including the transfer of Apple's 20% stake, marking a significant step in Amazon's strategy to expand its satellite offerings into direct-to-device services.
See More
