Globalstar Stock (GSAT): Too Hot or Just Getting Started?

By Patricia Miller

Jul 08, 2025

3 min read

Globalstar stock continued rise as it locked in a SpaceX launch deal, accelerating plans for next-gen satellite deployment despite ongoing financial hurdles.

#Globalstar Latest

Globalstar, Inc (NYSE:GSAT), a recognized name in the satellite communications industry, has seen its share price rise recently—buoyed by news of a launch services agreement with SpaceX. The deal covers the final nine replacement satellites built by MDA under a 2022 procurement agreement. The launch, expected next year, will strengthen Globalstar’s satellite network under a renewed 15-year FCC license (HIBLEO-4).

Despite the boost, revenue growth was modest at around 6% last quarter. Earnings per share improved—from a GAAP loss of ~$0.16 to a non‑GAAP adjusted loss of ~$0.09—though the company remains unprofitable. As a result, investor sentiment is mixed: technical traders see upside momentum, but analysts are divided, reflecting both excitement and caution.

#What Investors Need to Know About Globalstar

  • Revenue growth of approximately 6% in the last quarter, while earnings improved but remain negative.

  • Investor sentiment is mixed, with traders seeing upside but analysts cautious.

#Globalstar At A Glance

Globalstar is a satellite communications company focused on providing global mobile and fixed satellite communication services. It services various sectors, including telecom and many businesses that need reliable data connectivity in remote areas.

#Competitive Landscape

Globalstar operates in a competitive environment that includes firms such as Iridium Communications and Inmarsat, both of which are established in the satellite communications sector. Each company faces unique challenges, including technological advancements, regulatory environments, and market demand shifts.

#Near-Term Catalysts and Risks

In the near term, Globalstar's stock could benefit from ongoing trends in satellite communications, especially in sectors pushing for greater connectivity and smart solutions. However, risks remain, particularly concerning its financial health and valuation, which could deter potential investors as the market evaluates the true worth of the company against its growth prospects.

#Trading GSAT Stock

When considering how to frame the trade for GSAT, it's essential to balance the current momentum against the stock's valuation concerns. While short-term traders may find opportunities to capitalize on the recent price movement, long-term investors might approach with caution, given the company's profitability struggles and mixed revenue outlook. Keep an eye on broader market trends that could impact satellite communications.

#FAQ

Why should I invest in a satellite communications stock?

Investing in satellite communications stocks can provide exposure to a growing market driven by increasing demand for connectivity, particularly in remote regions. As technology evolves, companies like Globalstar are well-positioned to capitalize on these advancements, making it a potential long-term investment opportunity.

What are the risks associated with investing in GSAT?

The primary risks involve the company’s financial performance. Globalstar remains unprofitable, and its high valuation metrics may not reflect its true earnings potential, which could lead to stock price corrections. Additionally, competition in the satellite space may pose further challenges.

How do satellite communication companies make money?

Satellite communication companies typically generate revenue through subscriptions for data and voice services, equipment sales, and contracts with businesses and governments requiring reliable connectivity solutions.

How does Globalstar compare to its competitors?

While Globalstar has unique offerings, it competes against larger firms with broader service capabilities. Investors should assess Globalstar's market position relative to these competitors in terms of service quality, pricing, and technology.

What factors influence the stock price of satellite companies?

Factors affecting stock prices include technological advancements, regulatory changes, market demand for services, and the overall performance of the telecommunications sector. Global events and economic conditions also play crucial roles in influencing investor sentiment and stock valuations.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.