Globalstar Rises Amid Sector Rout as Amazon Deal Lifts Valuation

Globalstar, a space stock, defied July's sector-wide rout by rising nearly 3% amid a broad selloff. In contrast, AST SpaceMobile fell 34%, Rocket Lab dropped 36%, and SpaceX slid 37%. Planet Labs and Spire Global fell 38%, while Intuitive Machines declined 42%.

The outperformance of Globalstar can be attributed to its signed takeover agreement with Amazon in April, valued at about $11.6 billion. Globalstar shareholders can elect to receive $90 in cash or 0.3210 Amazon shares for each share, with the stock consideration capped at $90 and subject to proration.

The deal gave GSAT a defined reference value, whereas most rival space stocks continued to trade primarily on future growth expectations and funding requirements. Amazon's proposed constellation of up to 5,105 satellites for direct-to-device voice, messaging, data, and emergency services further solidified Globalstar's position.