So, why is Globalstar Inc. (GSAT) stock flying high this morning? It turns out the rumor mill is churning with whispers of a potential buyout, and the suitor is a rather large online retailer you might have heard of.
Shares of the satellite communications firm were up a hefty 11.63% to $76.50 in premarket trading Thursday. The catalyst? Media reports, citing The Financial Times, claim that Amazon.com, Inc. (AMZN) is in talks to acquire the company.
Think of it this way: Amazon has its own satellite internet project in the works, called Project Kuiper (or Leo for short), which is gearing up for a commercial launch. To compete with Elon Musk's SpaceX and its Starlink constellation, Amazon needs scale and infrastructure. Buying Globalstar, which already has satellites in orbit and existing launch agreements with SpaceX, could be a fast track to getting it.
Amazon is reportedly aiming to deploy about 1,600 of its own satellites by mid-2026. Bringing Globalstar into the fold could significantly bolster that effort and heat up the space-based broadband battle.
Financially, Globalstar was sitting on a healthy pile of cash at the end of last year. The company reported cash and equivalents of $447.5 million as of December 31, 2025, up from $391.2 million a year earlier.
What the Charts Are Saying
Let's look under the hood. At $76.50, the stock is trading 26% above its 20-day simple moving average and 24% above its 100-day average. That's a clear sign of strong short-term momentum and a bullish trend.
The Relative Strength Index (RSI) sits at 60.39, which is considered neutral territory—so the stock isn't overbought or oversold just yet. The MACD indicator is also flashing bullish, with the MACD line well above its signal line.
Traders are watching a key resistance level at $79.00, which could act as a ceiling for further gains. On the flip side, $75.00 is seen as important support; a break below that might signal the momentum is fading.
Perhaps most impressive is the long-term run: Globalstar shares have skyrocketed 229% over the past 12 months and are currently hovering near their 52-week high of $74.88. This potential Amazon deal is just the latest chapter in a story that has already captured strong investor interest.
Earnings on the Horizon and What Analysts Think
The company is scheduled to report its next batch of financial results on May 7, 2026. The consensus estimate calls for a loss of just 1 cent per share, a dramatic improvement from the loss of 16 cents per share in the year-ago period. Revenue is expected to climb to $70.59 million, up from $60.03 million.
Analysts, on average, have a Buy rating on the stock with a price target of $49.70. That target, however, is well below the current premarket price, suggesting the Amazon rumors have pushed the stock beyond where analysts thought it should trade based on fundamentals alone.
Recent analyst actions include B. Riley Securities raising its price target to $75.00 in November 2025 and Clear Street initiating coverage with a Buy rating and a $66.00 target in October 2025.
The ETF Angle
Here's an interesting mechanical detail for market structure fans: Globalstar isn't just a standalone stock. It's also a notable holding in at least one popular thematic ETF.
The Procure Space ETF (UFO) has a 5.08% portfolio weight in GSAT. That's significant. What it means is that any major inflows or outflows from that ETF will force automatic buying or selling of Globalstar shares by the fund manager to maintain that weight. So, momentum in the stock can beget more momentum through this ETF channel.
In summary, Globalstar's surge is a classic market move: a strategic asset in a hot sector (space internet) catches the eye of a deep-pocketed giant (Amazon). The technicals confirm the bullish sentiment, and the stock's place in a key sector ETF adds another layer of trading dynamics. Investors will be watching closely to see if these talks materialize into a deal that reshapes the satellite internet landscape.
