GSAT Should I Buy
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Globalstar Inc (GSAT) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The recent acquisition by Amazon at a premium price of $90 per share, combined with positive hedge fund activity and bullish technical indicators, makes this stock an attractive opportunity. Despite weaker financial performance in Q4 2025, the strategic acquisition and growth potential in the satellite market outweigh the negatives.
The technical indicators are bullish. The MACD histogram is positive and contracting, RSI is neutral at 72.999, and moving averages are aligned bullishly (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 79.819), suggesting potential upward momentum.
Amazon's acquisition of Globalstar for $90 per share is a major positive catalyst, as it positions the company strategically in the satellite-to-phone connectivity market. Hedge funds have significantly increased their buying activity (+113.87% last quarter), indicating institutional confidence.
The company's Q4 2025 financial performance showed a net income drop of -72.98% YoY and EPS decline of -73.81% YoY, which may raise concerns about profitability. Additionally, there is no recent congress trading data to further validate sentiment.
In Q4 2025, revenue increased by 17.63% YoY to $71.96 million, and gross margin improved by 22.97% YoY to 33.51. However, net income dropped significantly by -72.98% YoY to -$14.29 million, and EPS fell by -73.81% YoY to -0.11, reflecting profitability challenges.
Clear Street maintains a Buy rating with a $71 price target, citing a sum-of-the-parts valuation. The acquisition by Amazon has driven the stock price higher, and analysts are optimistic about the company's strategic position in the satellite market.
