Globalstar’s (GSAT) shares have soared 83.1% in price over the past month to close Friday’s trading session at $2.60, on speculation that it might partner with Apple (AAPL). So, is the company well-positioned to continue gaining due to increasing demand for SPOT Gen4 satellite GPS messengers? Let’s find out.Covington, La.-based mobile satellite services provider Globalstar, Inc.’s (NYSE:GSAT) offerings include voice and data communications services. Its shares have soared 83.1% in price over the past month to close Friday’s trading session at $2.60, due mainly to speculation that Apple Inc.’s (NASDAQ:AAPL) new iPhone will include satellite communications technology. TFI International (NYSE:TFII) Securities analyst Ming-Chi Kuo said recently that GSAT would most likely partner with AAPL. However, many analysts dispute this speculation, arguing that a custom chip would improve existing 5G connectivity.
Focused on a niche area, GSAT faces competition from Iridium Communications Inc. (NASDAQ:IRDM) and ORBCOMM Inc. (ORBC). Furthermore, GSAT’s top line declined in the second quarter (ended June 30, 2021). In addition, its decline in Duplex subscribers is expected to continue in the near term, and its SPOT segment’s average revenue per unit (ARPU) could also continue to decrease. So, its near-term prospects look bleak.
Here are the factors that we think could influence GSAT’s performance in the coming months: