You never know what a new relationship can lead to. In the case of Orbsat (NASDAQ:OSAT), a new partnership with Alibaba (NYSE:BABA) began paying off immediately. An announcement by the satellite company just this morning is leading to a huge lift in the price of OSAT stock. What’s behind the company’s 64% gains today?
Orbsat is a satellite communications company headquartered in Florida. Since the 1990s, Orbsat has provided communications across a vast number of markets. The agriculture, forestry, media, marine shipping and utilities industries all have Orbsat customers, among many others.
Through Orbsat’s offerings, these companies can utilize emergency assistance, track movement of goods and other assets, and communicate across the company’s robust satellite network.
This morning, the company is announcing a new customer, and it is piquing investor interest. Orbsat is striking up a partnership with e-commerce monolith Alibaba.
OSAT Stock Flies High After Inking Alibaba Deal
Alibaba is a Chinese company, representing the largest business-to-business e-commerce platform. As such, the company has a robust network of customers from 190 countries, and receives upward of 340,000 inquiries daily. The partnership with Orbsat, according to the company’s press release, will see Orbsat listed as a Gold Supplier on the Alibaba platform.
Gold Suppliers are the highest-tier sellers on the Alibaba marketplace. Orbsat will have access to all of Alibaba’s 26 million customers. There, it will provide over 500 satellite technology products to a whole new market. Its catalog will be landing on the Alibaba website in 2022.
This is a huge moment for OSAT stock as the company looks to greatly expand its global reach. Investors know it too; the announcement is precipitating a huge influx of buyers and sending OSAT stock rocketing this morning.
Over 75 million shares have traded hands just this morning, against the small-cap play’s daily average of just under 2 million. Consequently, the stock is gaining over 64% on the news, moving from $6.65 at yesterday’s close to nearly $11 before noon today.
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On the date of publication, Brenden Rearick 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.