Little-known enterprise Satixy Communications (NYSEAMERICAN:SATX) again stole the limelight on Friday, though to a lesser degree than in previous sessions. Following a dramatic surge this morning to the cusp of $80, SATX stock began trending around the mid-$58 level, gaining about 13% in the process. Over the last five sessions, the vertically integrated communications systems provider skyrocketed more than 400%.
Having only made its public market debut last month via a reverse merger with special-purpose acquisition company (SPAC) Endurance Acquisition Corp., SATX stock represents a youthful investment vehicle. Nevertheless, it already owns a remarkable breadth of chart mobility, featuring a 52-week range between $7.39 to $79.20.
As with many high-risk ventures in the market, SATX stock attracts intense chatter on various social media platforms. Though SPACs were all the rage through the roughly first two years of the post-pandemic new normal, this distinct segment of the equities sector suffered a catastrophic loss of demand this year. In fact, in May, the Wall Street Journal reported that several SPACs may go bust.
However, SATX stock managed — at least so far — to buck the trend. Though wild speculation may be a component of its success, it’s also fair to point out that Satixfy’s vertically integrated satellite systems business features an expansive total address market. From the Internet of Things, smart mobility, in-orbit payloads and in-flight connectivity solutions, Satixfy can potentially command a strong share of the industries of tomorrow.
The Compelling Narrative of SATX Stock
While SATX stock carries the aura of a white-knuckled, high-stakes wager, the underlying narrative — should it pan out — provides fuel for contrarian traders.
According to one of its filings with the U.S. Securities and Exchange Commission, Satixfy focuses on “designing chips and systems that serve the entire satellite communications value chain — from the satellite payload to user terminals. SatixFy creates chip technologies capable of enabling satellite-based broadband delivery to markets around the world.”
In addition, management notes that it “believes it is the only vertically integrated maker of satellite communications systems providing products across the entire satellite communications value chain. All of its systems integrate its proprietary semiconductor chips, of which it is a fabless manufacturer.”
Fundamentally, SATX stock aligns with some of the most relevant and burgeoning industries. For instance, in 2021, the global 5G satellite communications market featured a valuation of approximately $2.55 billion. Experts project that by 2030, the segment will command a valuation of $33.9 billion, representing a compound annual growth rate (CAGR) of 33.3%.
Thus, speculators can get ahead of this potential wave by purchasing investments like SATX stock. Nevertheless, it’s also important to recognize the pitfalls of survivorship bias when conducting due diligence via social media. Anyone can throw out various ideas, so it’s especially critical to avoid conflating coincidence with clairvoyance.
On the date of publication, Josh Enomoto 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.