Positive analyst coverage can often lead to strong moves in stocks and that is what seemed to have happened with the Globalstar (NYSEAMERICAN:GSAT) stock on Monday. The stock soared by as much as 64% on Monday after an analyst stated that the satellite company could eventually end up partnering with the tech behemoth Apple.
The possibility of such a partnership naturally led to a lot of excitement among investors and the Globalstar stock flew. Ming-Chi Kuo, who is an analyst at TF International Securities noted that the new iPhones which are going to be launched next month are going to be equipped with satellite communications.
The phones are going to be equipped with a custom made chip from Qualcomm which is going to allow users to make calls without the need of a mobile network. Considering the fact that Globalstar already has a partnership in place with Qualcomm, the analyst stated that the company is expected to be the local satellite provider for those phones.
Hence, there is a distinct possibility of Globalstar getting into a lucrative partnership with Apple. At this point in time, investors could do well to keep an eye on the news with regards to this.