Shares of satellite communications provider Globalstar (NASDAQ:GSAT) fell 6.8% in the afternoon session after the stock pulled back following a significant rally driven by reports of a potential acquisition by Amazon.
The decline came after shares had previously surged more when news broke that Amazon was reportedly in talks to buy the mobile connectivity provider. However, the initial investor optimism appeared to be tempered by the complexities of a potential deal. A key challenge noted in reports was that Apple controlled a large part of Globalstar’s satellite capacity. This existing arrangement would likely complicate any agreement with a major competitor like Amazon, leading to pressure on the stock after its sharp run-up.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
Globalstar’s shares are extremely volatile and have had 49 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 4 days ago when the stock gained 8.9% on the news that reports emerged that Amazon was in talks to acquire the satellite communications company.
According to multiple sources, the e-commerce giant was in advanced discussions to purchase Globalstar. An acquisition would provide Amazon with immediate satellite infrastructure and valuable spectrum assets, strengthening its low-Earth orbit satellite network as it competes with rivals like SpaceX’s Starlink.
Globalstar is up 13.7% since the beginning of the year, and at $72.74 per share, it is trading close to its 52-week high of $77.73 from April 2026. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $3,760.
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