Globalstar (GSAT) stock has skyrocketed 273% in the last 52 weeks, rallying on the back of an expanded service offering that provides growth visibility. GSAT stock has also climbed 25% over the last month, with a large part of the rally attributable to speculation related to Amazon (AMZN) deal talks. According to reports, tech giant Amazon is in talks to acquire Globalstar for a consideration of $9 billion.
The potential acquisition would support Amazon’s push to build its own low-earth orbit satellite business. It’s worth noting that Apple (AAPL) invested $1.5 billion in Globalstar in 2024 for a 20% stake. This would necessitate talks between Amazon and Apple if the acquisition is finalized.
Through this potential deal, Amazon is targeting to compete with SpaceX and its satellite-based internet service, Starlink. It remains to be seen whether the speculation will prove true. For now, though, it makes sense for investors to remain on the sidelines. GSAT stock has seen a meaningful rally with current valuations in-line with the possible takeover price.
Headquartered in Covington, Louisiana, Globalstar provides mobile satellite services in North America, South America, Europe, Australia and other parts of the world. Through its low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, the company delivers satellite and terrestrial connectivity solutions. With more than 175 patents, Globalstar is also an innovator, providing an edge over peers.
In fiscal 2025, the company launched two-way satellite IoT capabilities and initiated the commercial rollout of its RM200M module. Further, the company has made inroads in the government and defense sector, expanding its total addressable market.
Revenue for fiscal 2025 was $273 million, which was higher by 9% on a year-over-year (YOY) basis. For the same period, adjusted EBITDA was $136.1 million, implying a healthy margin of 50%.
With factors like steady growth, robust margins, diversification, and the potential acquisition, GSAT stock has surged by 93% in the last six months.
Globalstar has made steady progress in terms of new product launches. However, top-line growth was 9% in 2025. Globalstar also guided for revenue of roughly $293 million at the midpoint for fiscal 2026, impying YOY growth of 7%. Therefore, growth acceleration remains elusive. That’s a potential risk at a time when GSAT stock has been surging.
