Shares of Globalstar Inc. (GSAT) skyrocketed by as much as 68.57% in pre-market trading on Thursday, November 1, 2024, following news that the satellite communications company has expanded its partnership with tech giant Apple Inc. (AAPL).
According to regulatory filings and a company update, Globalstar and Apple have agreed to amendments to their existing service agreements, which will significantly increase the revenue Globalstar derives from providing mobile satellite services to Apple's products and services.
In a statement, Globalstar revealed that the amended agreements are expected to "more than double" the company's projected annual revenue levels for 2024. The exact financial terms of the deal were not disclosed, but the news was clearly welcomed by investors, sending Globalstar's stock price soaring to its highest levels since 2007.
Analysts view the expanded partnership as a major win for Globalstar, which has been working to capitalize on the growing demand for satellite-based connectivity, particularly in the Internet of Things (IoT) and emergency services sectors. With Apple's massive customer base and product reach, the agreement could provide a significant boost to Globalstar's revenue and profitability in the years ahead.
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