Stocks

GlobalStar (GSAT): Huge deal with Qualcomm

On Tuesday, GlobalStar (GSAT) satellite provide announced that Qualcomm (QCOM) will use GlobalStar’s Band N53 in it’s flagship modem.

The New Modem

Qualcomms X65’s modem helps broaden the types of devices that can plug into GlobalStars’s network. A host of Internet of Things (IoT) such as laptops, tablets and smarphones will now be available to use GlobalStar’s 5G spectrum.

In a press release,

“As we continue to build momentum in our terrestrial spectrum commercialization, this partnership substantially expands Globalstar’s potential.”

Jay monroe, globalstar chairman

They have appreciated the close relationship they have with Qualcomm since the inception of the company. Globalstar thanks Qualcomm for their hard work in helping them deliver on Band N53’s promise.

What analysts say

Previously, analysts questioned if GlobalStar could be able to find ways to monetize it’s spectrum assets. Last month on January 22nd, Morgan Stanley analyst Simon Flannery downgraded GlobalStar’s stock from equal weight to underweight and a target price of $0.55 on it’s common stock due to concerns in GlobalStars monetization efforts. However, looking at the stock price today it wen up 21.39 percent. The price action suggests that investors are buying into GlobalStar’s 5G strategy after the game-changing announcement partnership with Qualcomm.