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Summary
- Stocks of Orbsat Corp (NASDAQ:OSAT, OSAT:US) jumped 95 per cent at market open on Tuesday, July 13.
- It was trading at US$ 13 (10AM EST).
- The spike came as the satellite communications solutions provider made a corporate announcement earlier in the day.
Stocks of Orbsat Corp (NASDAQ:OSAT, OSAT:US) jumped 95 per cent at market open on Tuesday, July 13, trading at US$ 13 (10AM EST).
The spike came as the satellite communications solutions provider announced that its unit, Global Telesat Communications (GTC), has entered a deal with tech giant Alibaba.com (NYSE:BABA,BABA:US).
Orbsat announced in its statement on Tuesday that GTC will be a ‘Gold-Supplier’, i.e., a premium seller at Alibaba's e-commerce platform.
According to the company's statement, Orbsat is planning to launch a new storefront in the third quarter of 2021. It aims to provide extensive connectivity products and a wide range of satellite Internet of Things (IoT).
At the e-commerce platform, Orbsat also plans to sell satellite tracking products that can be used to track and monitor vehicles like cars, trucks, containers, boats as well as yachts. Presently, the company has 500 different products, a full catalogue of which would be available on Alibaba.com at the beginning of the first quarter of 2022.
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OSAT stock performance (NASDAQ:OSAT, OSAT:US)
The latest partnership with Alibaba Group could help Orbsat in increasing its global presence. Presently, Alibaba.com has at least 26 million active business partners worldwide who serve customers in over 190 countries.
Alibaba.com reportedly receives 340,000 product inquiries and 20,000 requests for a quote on a daily basis, which could benefit Orbsat. In addition, as a Gold-Supplier, the company would get a chance to display its products efficiently on the e-commerce website.
Orbsat CEO and chairperson Charles M Fernandez said that the company aims to expand the business operations, and this partnership is part of accelerating its global expansion plans. As the pandemic has boosted online shopping, it will also be able to better serve the needs of customers through Alibaba.com, added Mr Fernandez.
OSAT stock has catapulted by 120.6 per cent quarter-to-date (QTD). In the past week, it noted a growth of 22.6 per cent, edging out the NASDAQ Composite Index’s growth of 21.8 per cent.
In Q1 2021, Orbsat recorded a gross profit of US$ 437,517, as compared to that of US$ 348,001 in the first quarter of 2020. In the latest quarter, it narrowed down its net loss per share to US$ 0.16, down from US$ 2.43 in Q1 2020.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
