Starlink exceeding expectations ‘at the expense of Gogo,’ Bear Cave says

On his Bear Cave blog, Edwin Dorsey writes in part: “Gogo (GOGO) provides inflight internet to around 8,000 business jets, primarily in North America. Investors believe Gogo is turning into a highly durable cash flow machine with recurring revenues, customer lock-in, and room to expand in the underpenetrated business aviation connectivity market. The company is a favorite among value investors who believe it will be able to compete favorably against SpaceX’s Starlink because of its premium service, legacy relationships, apolitical stance, and its ability to be easily installed on smaller jets. After analyzing commentary from Starlink customers and industry participants, The Bear Cave concludes the opposite: Starlink is exceeding expectations in business aviation connectivity and will continue to do so at the expense of Gogo.”