Earlier on in the year the mobile satellite services company Globalstar Inc (NYSEAMERICAN:GSAT) had seen its stock go through a remarkable rally on the basis of a rumour.
Trading Data
On Monday, GSAT stock slid 7.10% at $1.44 with more than 10.32 million shares, compared to its average volume of 38.86 million shares. The stock has moved within a range of $1.4300 – 1.6000 after opening trade at $1.60.
Key Analysis
It had been speculated that the tech behemoth Apple was going to partner with Globalstar in order provide the user of the iPhone with the possibility of contacting first responders if they were ever in isolated zones. The whole thing was going to be accomplished by connecting the iPhones to satellites that are controlled by Globalstar. It was a rumour that had naturally excited investors and had led to strong gains in the stock.
However, the rumour has fizzled out and it seems that the feature that Apple may be contemplating is not going to be introduced up until next year.
Earlier on this year in August, a source within Apple had told a business publication that although the feature might be added, it is not going to happen until 2022. Hence, the lure of the Globalstar stock has now weakened considerable and it might no longer be on the radars of investors up until next year. It now remains to be seen if the stock records declines or not.
Technical Data
GSAT stock is trading below the 20-Day and 50-Day Moving averages of $1.59 and $1.62 respectively. Moreover, the stock is below above 200-Day moving average of $1.54. The stock is 8% in the past month.
