Globalstar’s (NYSEAMERICAN:GSAT) stock could break out soon as its partnerships blossom. The company’s Q2 results were disappointing, with revenue declining and operational losses increasing YoY. However, even though the results were disappointing, share prices move up, attributed to improving losses.
Notably, a bullish position on GSAT depends on intuitions regarding its prospects instead of relying on fundamentals alone. For instance, news about its past deals makes GSAT worth watching.
For the whole of 2019 through 2020, Globalstar shares were trading below $1, and they seemed to have settled at the $0.3 level until the surge seen early this year. This came after Nokia (NYSE: NOK), its partner, and Tideworks Technology entered an agreement. The agreement entails the companies deploying Globalstar’s Band 53 spectrum at the Port of Seattle’s Terminal 5. Following the announcement, the shares jumped from $0.3 to $1.24 within ten days. This 250% surge put the stock on the map, and it is worth watching in the coming days.
Market Reaction:
On Tuesday, GSAT stock ended flat at $1.42 with more than 3.37 million shares, compared to its average volume of 25.07 million shares. The stock has moved within a range of $1.4000 – 1.4550 after opening the trade at $1.40.
