Globalstar (NYSEAMERICAN:GSAT) Stock Continues to Trade in a Range: What Next?
10:00 am Monday, August 09th, 2021
Personifying its name, Globalstar (NYSEAMERICAN:GSAT), the satellite communication specialist, is set to cover the expanse of the globe. With the adjusted EBITDA that exhibited a compound annual growth rate (CAGR) of 20% from 2016 to 2020, the company is definitely on a growth streak.
However, those who are keen in investing in the company’s stocks are still waiting for the partnerships to bear fruits as the Q2 earnings did not capitalize as per the expectations. Despite the downward movement in the revenues along with the operational losses, the share prices trended upward on the news.This was likely attributable to improving losses. Thus, for any sort of investment, an investor must consider not only the fundamentals of the company but also its future prospects. Considering both these aspects, makes Gobalstar worth considering.
Recalling of the incidents where the company’s partnership with Nokia saw its share soaring as soon as the latter announced of entering into an agreement with Tideworks Technology, and a month later it’s deal with Qualcomm, one could anticipate of the same in the near future. Globalstar clearly gained a significant boost from the brand name value of being associated with Nokia and Qualcomm.
However, in order to continue shaping itself in the realm of IoT, the company signed a deal with Cisa Trading of Brazil to track all 4,400 of its containers with its SmartOne Solar devices. The company also signed several other deals in the mid of the year in order to keep its safety and tracking intact. The company is making consistent developments in order to improve its services. All of this makes for an interesting company, but despite that contention, investors are going to struggle to see a firm reason to invest in GSAT stock based on its fundamentals.
