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GSAT Stock Alert: Why Is Globalstar Soaring 20% Higher Today?

One of the bright spots in today’s otherwise gloomy market is Globalstar (NYSE:GSAT). At the time of writing, GSAT stock is up more than 18%, as the market continues to digest the outright invasion of Ukraine today.
Source: NicoElNino /…

One of the bright spots in today’s otherwise gloomy market is Globalstar (NYSE:GSAT). At the time of writing, GSAT stock is up more than 18%, as the market continues to digest the outright invasion of Ukraine today.

Source: NicoElNino / Shutterstock.com

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Globalstar is a producer of mobile satellite services for a range of customers. This company’s satellite networks provide for two-way voice and data products, and are also used for a range of safety and emergency preparedness applications. Given the significant concern from this geopolitical unrest, GSAT stock is one investors are watching closely today.

Globalstar has been a volatile stock for much of the past year. Much of this has to do with the company’s difficult-to-assess financials. However, there’s a company-specific reason why GSAT stock is soaring today. Let’s dive into what investors are watching with this company.

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GSAT Stock Takes Off on Contract Announcement

Today, Globalstar announced that the company has signed a contract with Macdonald, Dettwiler and Associates (OTCMKTS:MDALF) for 17 new satellites. This deal is one that will “replenish and extend the life of Globalstar’s existing constellation.” Accordingly, the market is taking this deal as positive news for Globalstar’s ongoing operations.

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This deal is a big one, totaling $327 million. In addition to the 17 initial satellites, Globalstar also has the option to purchase an additional nine satellites under the contract. Accordingly, this contract provides both growth and flexibility for Globalstar, something investors like.

In this agreement, it was also stated that Globalstar is expected to launch these satellites by 2025. Thus, investors looking for color on the company’s launch schedule now have something to digest. Overall, this news is being taken positively be the market, for a number of reasons. Indeed, investors looking for a catalyst for GSAT stock now appear to have one.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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