Today, Globalstar (NYSE:GSAT) is one of the top trending tickers in the market. Currently, GSAT stock is trading more than 20% higher on very heavy volume as speculators appear to be jumping aboard this telecom play.
In general, telecommunications companies aren’t that interesting to investors. Many of the larger, more established telecom players provide stability and dividend yield, but little in the way of growth.
That’s where Globalstar is different. This telecommunications company is focused on providing mobile satellite services. These services are typically used by those outside of the traditional zones covered by wireless providers. With a market capitalization of less than $5 billion, Globalstar is an emerging player in a sector that has seen consolidation breed giants, making competition a difficult prospect for smaller providers.
That said, Globalstar is a company that seems to have found its niche. And today, investors have discovered this company’s growth potential. Let’s dive into what specific catalyst is taking GSAT stock higher today.
GSAT Stock Surges on Speculation Around Potential Customer
Ahead of the annual new iPhone release, Apple (NASDAQ:AAPL) has been a hot stock in recent weeks. This company’s share price has done very well this year amid expected growth, particularly in the company’s smartphone division.
One of the new features expected with the iPhone 13 (or whatever it will be called — we don’t know yet) is satellite connectivity. The idea is that wherever iPhone users are, they’ll be able to make an emergency call. Sounds like a great feature to be added, right?
Here’s where Globalstar fits in. Investors have speculated for some time that this new feature will involve some sort of partnership between Apple and Globalstar. In lieu of any formal announcements, Twitter speculation is all investors have had to go off of recently.
However, today traders began circulating a Federal Communications Commission (FCC) permit showing that Apple could be a customer of Globalstar. Again, there’s a lot of speculation built into these assertions. Apple isn’t called out specifically in the permit. However, any sort of news appears to be good news for GSAT stock right now.
On the date of publication, Chris MacDonald 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.