- The stock price of Globalstar, Inc. (NYSEAMERICAN: GSAT) fell by over 12% today. This is why it happened.
The stock price of Globalstar, Inc. (NYSEAMERICAN: GSAT) fell by over 12% today. Investors were likely reacting negatively to a report from Bloomberg.
Recently, an FCC filing drove up Globalstar’s stock more than 30% due to speculation that some of its tech will be used in the new iPhone for emergency communications via satellites in areas where there is no mobile network connectivity available. Gurman said that the FCC filing has “nothing to do with Apple” though.
“When I broke the news that Apple intends to add satellite functionality to the iPhone next year for emergency uses, I said that Apple’s likely partner on such technology would be Globalstar,” wrote Gurman in the report. “Here’s what Tim Farrar, the foremost analyst on satellite matters, told me: ‘In order to deliver a two-way emergency messaging service to an iPhone, Globalstar would need to implement a high-power return channel for its existing SPOT simplex service. However, as it says in the application, this authorization is for regular data communication with NASA’s PTD-2 satellite and does not relate to smartphones on the ground.’”
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