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Shares of Globalstar (NYSEMKT:GSAT) soared 69% on Tuesday after the satellite services provider said Qualcomm (NASDAQ:QCOM) will include Globalstar’s Band n53 in its flagship 5G modem.
Qualcomm’s new X65 modem helps to broaden the types of devices that can plug into Globalstar’s network. Smartphones, tablets, laptops, and a host of Internet of Things (IoT) devices will now be able to use Globalstar’s 5G spectrum.
Globalstar’s stock price surged on Tuesday. Image source: Getty Images.
“As we continue to build momentum in our terrestrial spectrum commercialization, this partnership substantially expands Globalstar’s potential,” Globalstar Chairman Jay Monroe said in a press release. “We have appreciated a close relationship with Qualcomm since the inception of the company and want to thank the team there for their hard work in helping us deliver on Band n53’s promise.”
Analysts had previously questioned whether Globalstar would be able to find ways to monetize its spectrum assets. On Jan. 22, Morgan Stanley analyst Simon Flannery went so far as to downgrade Globalstar’s stock from equal weight to underweight and place a $0.55 target price on its shares, due in part to his concerns regarding the satellite company’s monetization efforts. However, today’s gains suggest that investors are buying into Globalstar’s 5G strategy after the announcement of its potentially game-changing partnership with Qualcomm.
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