Amazon's $11.6B Deal Gives Globalstar Edge in Space Stock Rout

Globalstar (GSAT) stood out as the only winner among space stocks in July, rising nearly 3% while its peers lost a third or more of their value. AST SpaceMobile, Rocket Lab, and SpaceX each fell by over 30%, with Planet Labs, Spire Global, and Intuitive Machines declining by even more.

The sector's decline was largely due to investors reassessing high valuations, long deployment timelines, and the billions required to build and operate large constellations. SpaceX faced questions about AI spending, Starship execution, and future share supply following its June IPO.

Globalstar, however, had a signed takeover agreement with Amazon valued at $11.6 billion. The deal gives Globalstar shareholders a defined value of $90 per share or 0.3210 Amazon shares, subject to proration. This clear reference value set Globalstar apart from its peers, which continued to trade primarily on future growth expectations and funding requirements.

Amazon's plans for direct-to-device (D2D) services expanded last week with a proposed constellation of up to 5,105 satellites, using Globalstar's licensed spectrum. This move positions Amazon against SpaceX and other satellite providers, further solidifying the importance of Globalstar's spectrum, satellites, ground infrastructure, and D2D experience.