While the major stock market indexes continued to decline over the past few weeks, shares of inflight internet company Gogo (NASDAQ:GOGO) soared to hit their 52-week high of $19.23 on Friday. However, can the stock continue to rally even as the airline industry continues to be impacted by the COVID-19 pandemic? Let’s find out.One of the world's largest providers of broadband connectivity services for the business aviation market, Gogo Inc . (GOGO), has been operating for nearly three decades. The major stock market indexes witnessed a decline on October 1 on inflation fears. The S&P 500 index declined 4.8% on October 1, while the Dow and the tech-heavy Nasdaq Composite fell 4.3% and 5.3%, respectively. However, GOGO’s shares have surged 38.8% over the past month to close Friday’s trading session at $18.57. Moreover, the stock hit its 52-week high of $19.23 on Friday.
The company raised its long-term financial targets on September 28. Its revenue is expected to grow at a 15% CAGR between 2020 and 2025, while its annual adjusted EBITDA margin is expected to rise from 40% in 2021 to 45% in 2025. However, GOGO will not likely launch its 5G network until next year. It sold its Commercial Aviation (CA) business in December 2020. Moreover, the company reported losses in the second quarter. So, GOGO’s near-term prospects don’t look very promising.
Here’s what could influence GOGO’s performance in the upcoming months: