Globalstar (GSAT) stock surged higher on Thursday alongside reports that Amazon (AMZN) is interested in buying the mobile satellite services company. According to insider sources, negotiations between the two companies are still underway. While talks have been ongoing for a long time, there’s still no expected time period for when the deal could close.
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Trade AMZN with leverageThere are a few issues that have reportedly made the talks between Globalstar and Amazon more complex. For example, Apple (AAPL) has a 20% stake in GSAT stock via a $1.5 billion investment. This means Amazon may need Apple’s cooperation if it wants to complete an acquisition of Globalstar.
Amazon’s interest in Globalstar makes sense, as it wants to compete with SpaceX’s Starlink satellite service. This also synergizes with Blue Origin, a rival rocket company to SpaceX that is owned by Amazon founder Jeff Bezos. Amazon also has its own satellite service called Amazon LEO, though it’s still well behind SpaceX and Starlink in the space satellite race.
Globalstar Stock Movement Today
Globalstar stock gained 13.82% in pre-market trading on Thursday, following a 3.18% rally yesterday. The shares have also increased 12.27% year-to-date and 248.75% over the past 12 months.
GSAT stock activity today saw some 370,000 shares change hands, compared to a three-month average daily trading volume of about 747,000 shares.
Is Globalstar Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Globalstar is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average GSAT stock price target of $70.50, representing a potential 2.87% upside for the shares.
