As Amazon Considers Buying Globalstar, Should You Buy GSAT Stock?

Globalstar (GSAT) stock has skyrocketed 273% in the last 52 weeks, rallying on the back of an expanded service offering that provides growth visibility. GSAT stock has also climbed 25% over the last month, with a large part of the rally attributable to speculation related to Amazon (AMZN) deal talks. According to reports, tech giant Amazon is in talks to acquire Globalstar for a consideration of $9 billion. 

The potential acquisition would support Amazon’s push to build its own low-earth orbit satellite business. It’s worth noting that Apple (AAPL) invested $1.5 billion in Globalstar in 2024 for a 20% stake. This would necessitate talks between Amazon and Apple if the acquisition is finalized. 

Through this potential deal, Amazon is targeting to compete with SpaceX and its satellite-based internet service, Starlink. It remains to be seen whether the speculation will prove true. For now, though, it makes sense for investors to remain on the sidelines. GSAT stock has seen a meaningful rally with current valuations in-line with the possible takeover price. 

About Globalstar Stock

Headquartered in Covington, Louisiana, Globalstar provides mobile satellite services in North America, South America, Europe, Australia and other parts of the world. Through its low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, the company delivers satellite and terrestrial connectivity solutions. With more than 175 patents, Globalstar is also an innovator, providing an edge over peers. 

In fiscal 2025, the company launched two-way satellite IoT capabilities and initiated the commercial rollout of its RM200M module. Further, the company has made inroads in the government and defense sector, expanding its total addressable market.

Revenue for fiscal 2025 was $273 million, which was higher by 9% on a year-over-year (YOY) basis. For the same period, adjusted EBITDA was $136.1 million, implying a healthy margin of 50%. 

With factors like steady growth, robust margins, diversification, and the potential acquisition, GSAT stock has surged by 93% in the last six months. 

Elusive Growth Acceleration

Globalstar has made steady progress in terms of new product launches. However, top-line growth was 9% in 2025. Globalstar also guided for revenue of roughly $293 million at the midpoint for fiscal 2026, impying YOY growth of 7%. Therefore, growth acceleration remains elusive. That’s a potential risk at a time when GSAT stock has been surging. 

Having said that, Globalstar ended 2025 with a cash buffer of $447.5 million. Additionally, with an EBITDA margin of 50%, there is visibility for healthy cash flows. That financial flexibility could help the company pursue innovation-driven growth. 

Another point to note is that Globalstar pursued infrastructure investments in Europe, Asia, and North America last year. This will likely have an incremental impact on growth in the coming years. IoT market expansion is another growth catalyst, coupled with defense-focused order wins. 

Overall, the long-term outlook seems positive for Globalstar, although investors need to remain cautious considering GSAT's price action after a significant rally. 

What Do Analysts Say About GSAT Stock?

Based on five analysts with coverage, GSAT stock has a consensus “Moderate Buy” rating. Three analysts have a “Strong Buy” rating for Globalstar while two have a “Hold” rating.

The mean price target of $69.75 represents potential downside of about 10% from current levels. Further, the most bullish price target of $75 suggests that GSAT could correct by 3% from here. With a 25% rally in the last one month, it makes sense for investors to be cautiously optimistic. 

Investors should also note that the potential transaction is being reported at $9 billion. After the current rally, Globalstar commands a market capitalization of $9.9 billion. As such, the upside may be limited, even if there are confirmed reports of the acquisition at the speculated valuation.