Globalstar (GSAT) Surges 14.13% Intraday: What's Fueling the Rally?

Summary
• Globalstar’s stock rockets 14.13% to $28.74, marking a 14.1% rebound from its 52-week low of $14.99999925
• Q2 2025 revenue jumps 11% to $67.1M, driven by wholesale capacity services and government partnerships
• New satellite deployment with SpaceX and 90-antenna global network expansion signal infrastructure acceleration
• Analysts project 75% upside to $52.50 as satellite internet grows at 18.1% CAGR through 2030

Globalstar’s intraday surge reflects a confluence of earnings outperformance, strategic infrastructure investments, and high-impact partnerships. With the stock trading near its 52-week high of $41.10, the move underscores investor confidence in the company’s ability to capitalize on satellite connectivity’s explosive growth. The $28.74 price point, 14.13% above its previous close of $25.18, highlights a sharp reversal of fortune for a stock that had languished near its 52-week low just weeks ago.

Earnings Outperformance and Strategic Infrastructure Fuel Rally
Globalstar’s 14.13% surge stems from a combination of Q2 2025 earnings outperformance and strategic infrastructure advancements. The company reported an 11% revenue increase to $67.1 million, driven by 10% growth in service revenue and a record number of commercial IoT activations. Strategic partnerships with Parsons Corporation and the U.S. Army, coupled with a $37.5 million PTS-G contract awarded to sector peers, signaled growing demand for secure satellite communications. Additionally, Globalstar’s $308.2 million cash position and $77.9 million adjusted free cash flow for H1 2025 reinforced its financial resilience. The installation of 90 new antennas across 35 ground stations in 25 countries further solidified its network capacity, aligning with the sector’s shift toward LEO satellite dominance.

Satellite Communications Sector Gains Momentum
The satellite communications sector is experiencing a renaissance, with Globalstar’s rally mirroring broader industry trends. Competitors like Viasat and SpaceX are also expanding LEO constellations, but Globalstar’s unique position in government and defense markets—bolstered by its CRADA with the U.S. Army and capacity access agreement with Parsons—sets it apart. The sector’s growth is further catalyzed by Gartner’s forecast of $14.8 billion in LEO satellite communications spending by 2026, driven by remote connectivity and IoT applications. Globalstar’s 11% revenue growth outperformed the sector’s average, highlighting its ability to monetize infrastructure investments in a capital-intensive industry.

Options and ETF Plays for a Volatile Satellite Sector Rally
• MACD: 0.085 (bullish divergence), RSI: 35.6 (oversold), Bollinger Bands: 28.88 (upper), 25.65 (middle), 22.42 (lower)
• 200-day MA: Not available, 30-day MA: $25.44 (below current price), 100-day MA: $21.84 (well below)

Globalstar’s technicals suggest a continuation of its short-term bullish momentum. The stock is trading above its 30-day MA and near the upper Bollinger Band, with RSI in oversold territory indicating potential for a rebound. For options traders, the GSAT20250815C29 and GSAT20250919C30 contracts stand out:

• GSAT20250815C29 (Call, $29 strike, Aug 15 expiry):
- IV: 52.48% (reasonable volatility)
- Delta: 0.441958 (moderate sensitivity)
- Theta: -0.117778 (rapid time decay)
- Gamma: 0.177888 (high sensitivity to price swings)
- Turnover: 9,735 (liquid)
- Leverage Ratio: 40.80% (moderate leverage)
- Payoff at 5% upside (ST = $30.85): $1.85 per contract
- Why it stands out: High gamma and IV make it ideal for a short-term rally, with liquidity ensuring easy entry/exit.

• GSAT20250919C30 (Call, $30 strike, Sep 19 expiry):
- IV: 54.56% (reasonable volatility)
- Delta: 0.288706 (moderate sensitivity)
- Theta: -0.090730 (slower decay)
- Gamma: 0.148082 (modest sensitivity)
- Turnover: 22,643 (liquid)
- Leverage Ratio: 71.40% (moderate leverage)
- Payoff at 5% upside (ST = $30.85): $0.85 per contract
- Why it stands out: Longer expiry and balanced IV/delta make it a safer play for a sustained move.

Aggressive bulls should consider GSAT20250815C29 into a break above $30.85, while conservative traders may opt for GSAT20250919C30 to capture a multi-week rally.

Backtest Globalstar Stock Performance
The backtest of GSAT's performance after an intraday surge of 14% shows favorable short-to-medium-term gains, highlighting the stock's potential for positive movement following strong price days. The 3-Day win rate is 64.71%, the 10-Day win rate is 52.94%, and the 30-Day win rate is 52.94%, indicating a higher probability of positive returns in the immediate aftermath of such events. The maximum return observed was 13.61% over 30 days, suggesting that GSAT can maintain momentum following a significant intraday rally.

Globalstar’s Momentum Suggests a High-Conviction Trade
Globalstar’s 14.13% surge reflects a rare alignment of earnings outperformance, strategic infrastructure, and sector tailwinds. With the stock trading near its 52-week high and RSI in oversold territory, the technicals favor a continuation of the rally. The GSAT20250815C29 and GSAT20250919C30 options offer leveraged exposure to a stock that could test $31.00 in the near term. Investors should monitor the Sector Leader VTS (up 0.69%) for broader satellite sector sentiment. For those seeking a high-conviction trade, GSAT20250815C29 is a compelling call if $30.85 is breached, with a 5% upside scenario yielding $1.85 per contract.