We came across a bullish thesis on Globalstar, Inc. (GSAT) on wallstreetbets Subreddit Page by tke248. In this article, we will summarize the bulls’ thesis on GSAT. Globalstar, Inc. (GSAT)'s share was trading at $1.85 as of Nov 7^th.

Globalstar’s Q3 earnings report highlights a strong performance, showcasing significant revenue growth and operational achievements. The company reported $72.3 million in revenue, exceeding estimates by 19.5% and driven largely by high-margin wholesale capacity services, positioning Globalstar for continued expansion. Adjusted EBITDA increased 34% year-over-year, setting a new record, and showing enhanced operational efficiency. Additionally, regulatory support bolstered Globalstar’s strategic position with a recent 15-year FCC approval allowing the operation of up to 26 additional satellites. This extension ensures long-term service continuity and the potential for expanded capacity to meet growing demand.

Globalstar’s satellite network demonstrated resilience during recent hurricanes, maintaining reliable emergency service access even in critical conditions, which highlights the robustness of its infrastructure. In a major development, Globalstar announced an expanded $1.1 billion partnership with Apple on November 1 to enhance satellite-to-cellular connectivity for iPhone models 14 and newer. This partnership, centred on Apple’s Emergency SOS feature, enables iPhone users to send text messages to emergency services outside of cellular and Wi-Fi coverage by connecting directly to Globalstar's low Earth orbit satellites. This essential service ensures access to emergency help in remote areas, adding substantial value to Apple’s product offerings. The updated agreement includes an equity stake for Globalstar, which will help enhance capacity and reliability for Emergency SOS, cementing Globalstar’s role in consumer tech and satellite communications.

Overall, Globalstar’s strong financial performance, strategic partnership with Apple, and regulatory advancements position the company for sustained growth in satellite communications. The expanded Apple agreement and FCC approvals strengthen Globalstar’s standing in satellite-enabled emergency services, making it a key player in providing critical connectivity solutions. With multiple catalysts for growth and reinforced operational resilience, Globalstar appears well-equipped to capture increasing demand within the satellite communications sector.

Globalstar, Inc. (GSAT) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held GSAT at the end of the second quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of GSAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GSAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.