Globalstar (GSAT) stocks go skyward after Apple tie-up rumors

2 min read | August 31, 2021 06:00 AM AEST | By Team Kalkine Media

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Globalstar (GSAT) stocks go skyward after Apple tie-up rumors — Image source: Vintage Tone,Shutterstock

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Highlights

Globalstar Inc (AMEX: GSAT) stock skyrocketed by 57% at 2:04 pm ET.

The GSAT stock also saw a massive jump in trading volume on Monday.

The company, founded in 1991, had launched its IPO in 2006.

Globalstar, Inc. (AMEX: GSAT) stock jumped more than 57% after rumors that it may supply its satellite communication technology to Apple Inc. for a new phone.

The stock was up 57.99% to US$2.2592 at 2:04 pm ET on Monday.

Globalstar provides satellite solutions like fleet asset tracking, equipment monitoring, data communication services, etc., for business and private clients.

It has a market capitalization of US$4.2 billion.

Globalstar stock skyrocketed in intraday trading on Monday after rumors that Apple Inc. is in talks with the company to procure its satellite communication technology for a new iPhone 13. The satellite technology provides stronger signals in areas where 4G and 5G signals cannot reach.

The stock also saw a massive jump in trading volume – several times more than the previous day’s share volume of 6,450,618. The stock’s highest and lowest prices for the last 52-weeks were US$2.98 and US$0.29, respectively.

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The Covington, Louisiana-headquartered company was founded in 1991 and had launched its IPO in 2006. In the quarter ended June 30, 2021, its revenue was US$30.28 million compared to US$30.36 million in the same quarter of 2020.

Its net loss was US$21.45 million compared to US$24.74 million in the year-ago period. Its liquidity reserves were US$15.7 million, and restricted cash was US$51.0 million.

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Source – pixabay

Globalstar’s revenue comes from two streams: service revenue and subscriber equipment sales. Around 85% of its revenue is generated from services in North and South America, Europe, and other markets.

The stock closed at US$1.43 on Aug 27. Globalstar stock rose nearly 585.17% YTD.

Also Read: Five high-flying communication stocks to watch this fall

Bottomline

Earlier, there were also reports of Apple building its team for satellite technology. However, it has not confirmed the news. Apple has lately increased its research and development budget. But Apple hasn’t announced any plans to showcase a new phone soon. Still, analysts expect it may happen next month. However, until the company clarifies the reports, the news of a tie-up would remain a rumor.

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