Globalstar extends 2-day surge to 142% after Qualcomm says it will use the company's technology in new 5G modem
- Globalstar extended its two-day surge to 142% on Wednesday after a deal with Qualcomm sent the stock soaring Tuesday.
- "Qualcomm's support of Band n53 represents a significant milestone in our efforts to commercialize our spectrum," said Kyle Pickens, VP of Strategy.
- Globalstar's stock has jumped 780% year-to-date through Wednesday's intraday high.
Globalstar extended its two-day surge to 142% at intraday highs on Wednesday before paring gains. The jump came after the company said Qualcomm will use its Band n53 technology in a new 5G modem called the X65.
Globalstar is a satellite communications company that focuses on IoT (Internet of Things) solutions for customers in 120 countries around the world.
The company's new constellation of Low Earth Orbit (LEO) satellites and second-generation ground infrastructure that includes 24 ground stations helped it secure the Qualcomm deal.
"Qualcomm's support of Band n53 represents a significant milestone in our efforts to commercialize our spectrum in the US and all other countries where we have or expect to obtain terrestrial authority." Kyle Pickens, VP of Strategy at Globalstar, said.
With Qualcomm's support, Globalstar will be able to expand its device ecosystem significantly. This will allow the company to include the majority of popular smartphones, laptops, tablets, automated equipment, and other IoT modules in its networks.
Globalstar's stock has been on a run of late after the company announced a monthly subscription box service for satellite connectivity through its wholly-owned subsidiary SPOT LLC on Jan. 20.
A deal with Nokia to provide Globalstar's Band 53 spectrum at the Port of Seattle, Terminal 5, on Jan. 7, also boosted share prices.
Globalstar's stock has jumped as much as 780% year-to-date despite the company posting revenue of just $32 million, down 15% year-over-year, in its most recent earnings report. Globalstar also posted a significant net loss during the period.
The company trades at a lofty price to sales ratio of 26 and currently holds just one "sell" rating from analysts and zero "buy" or "neutral" ratings.
Shares of Global start traded up 20.5%, at $2.41 per share, as of market close on Wednesday, giving the company a $4.4 billion market capitalization.