Globalstar Defies Space Stock Rout as Amazon Acquisition Deal Lifts Its Value

Globalstar bucked the trend in July as space stocks plummeted by up to 42% amid concerns over high valuations and long deployment timelines. The company's stock rose nearly 3%, outperforming its peers, including AST SpaceMobile, Rocket Lab, and SpaceX.

The reason for Globalstar's resilience lies in Amazon's $11.6 billion takeover agreement, which provides the company with a clear reference value and limits potential upside. In May, Clear Street downgraded Globalstar to 'Hold' from 'Buy', citing limited remaining upside to the takeover value, but raised its price target to $90 from $71.

Amazon's proposed acquisition would give it Globalstar's licensed spectrum, satellites, ground network, and direct-to-device experience. The e-commerce giant also plans to use Globalstar's mobile satellite spectrum for its up to 5,105-satellite constellation for direct-to-device voice, messaging, data, and emergency services.

Globalstar has guided to 2026 revenue of $280 million to $305 million and an adjusted EBITDA margin of about 50%. Retail traders on Stocktwits have shown a bullish sentiment towards GSAT, with the ticker's watcher base growing by 1.5% over the past year.