What Happened?
Shares of satellite communications provider Globalstar (NASDAQ: GSAT) jumped 8% in the afternoon session after a bullish mention from CNBC's Jim Cramer and the company outlined its ambitious expansion strategy.
On his “Mad Money Lightning Round,” Cramer noted the satellite communications company was “finally breaking out.” This positive commentary followed Globalstar's strong second-quarter results from August, where it beat analyst estimates for both earnings and sales.
Adding to the upbeat mood, the company detailed its plans for a new HIBLEO-XL-1 satellite system. This move aimed to secure a larger piece of the global space economy, which management projected could reach $1.8 trillion by 2035. To fuel this growth, Globalstar previously made a significant $1.5 billion investment in its next-generation satellite constellation, which included 48 new satellites and an expanded ground network to deliver faster and more reliable service.
The shares closed the day at $34.29, up 6.8% from previous close.
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What Is The Market Telling Us
Globalstar’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 3% on the news that the company announced plans to bring its HIBLEO-XL-1 satellite system into use to prepare for its next era of mobile satellite connectivity.
This new system, filed through France, represents a significant expansion of the company's capabilities, including additional satellites, orbital shells, and new frequency bands beyond its currently licensed spectrum. CEO Dr. Paul Jacobs stated the move provides Globalstar with "significant optionality as the Company grows as a major provider of connectivity in the global space economy that is expected to reach $1.8 trillion by 2035." This initiative builds on a previously announced $1.5 billion investment in a third-generation system, C-3, underscoring the company's strategy to enhance its global services and improve user experience through more powerful satellite technology.
Globalstar is up 7.8% since the beginning of the year, but at $34.28 per share, it is still trading 9.6% below its 52-week high of $37.94 from September 2025. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $6,925.
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