Globalstar: The Next Big Satellite Winner After Deal With Apple?

Core Viewpoint - Globalstar's stock experienced a significant rebound after a partnership expansion with Apple, which has drawn renewed investor interest despite a prior decline in share value [1][3]. Company Overview - Globalstar is a mobile satellite services (MSS) company that utilizes low earth orbit (LEO) satellites and ground infrastructure to provide mobile phone services, particularly in remote areas lacking standard cell coverage [4]. - The company generates 95% of its revenue from communications services, with 49% of its revenue in 2023 coming from Apple [5]. Partnership with Apple - Globalstar's initial partnership with Apple began in 2022, allowing iPhone 14 and newer models to send emergency texts outside regular cell networks, supported by a $450 million investment from Apple to enhance infrastructure [6]. - The recent expansion of this partnership includes an additional investment of up to$1.5 billion from Apple, which consists of a $1.1 billion cash payment and a 20$5, indicating a potential upside of 170% from its current price [2][9]. - The company is positioned to compete with U.S. telecoms like T-Mobile, Verizon, and AT&T, which are also entering the satellite service market [9][10]. Investment Considerations - Globalstar's price-to-sales ratio is approximately twice that of AST SpaceMobile, although this does not factor in future revenue increases from the Apple deal [10]. - An Investor Day is scheduled for December 12, which may provide further insights into the company's prospects and stock valuation [10].