Is GSAT a good stock to buy? We came across a bullish thesis on Globalstar, Inc. on The Mispricing Desk’s Substack. In this article, we will summarize the bulls’ thesis on GSAT. Globalstar, Inc.’s share was trading at $81.19 as of June 8th. GSAT’s trailing and forward P/E were 13.15 and 9.22 respectively according to Yahoo Finance.
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Globalstar, Inc. provides mobile satellite services in the United States and internationally. GSAT represents a mispriced strategic acquisition spread with Amazon that the market is still treating as a simple headline cash takeout rather than a structured cash-capped, stock-linked satellite transaction. Under the announced terms, Amazon will acquire Globalstar with up to 40% of total consideration available in cash elections at the aggregate level, while the remainder is delivered in Amazon stock, creating a blended payoff that is frequently misread as a fixed $90 outcome.
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In reality, the structure produces a prorated mixed consideration that depends on election dynamics, Amazon’s share price, and milestone-related adjustments tied to satellite infrastructure deployment and regulatory milestones extending into a 2027 expected closing window. The market appears to be applying an overly conservative discount for duration, execution risk, and potential milestone adjustments, despite the fact that even under conservative assumptions the implied blended value of cash and Amazon equity remains above the current trading price in a base-case scenario.
This creates a situation where perceived downside is more narrative-driven than mechanical, while downside protection is supported by the announced consideration framework and partial cash component. Even after factoring in disclosed milestone adjustment risk, the remaining value is still anchored by Amazon equity consideration, which links Globalstar’s outcome to a large-cap strategic acquirer with significant balance sheet capacity and long-term satellite ambitions.
As information flow improves through regulatory filings and proration mechanics become clearer, the spread has room to compress as uncertainty is gradually replaced by defined payout probabilities. Overall, Globalstar offers a constructive asymmetric setup where downside is structurally supported by deal terms, while upside comes from re-rating toward the intrinsic blended Amazon-linked consideration rather than any change in strategic logic.
Previously, we covered a bullish thesis on Iridium Communications Inc. (IRDM) by Stock Picker’s Corner in October 2024, which highlighted its strong satellite network, diversified customers, and earnings growth potential. IRDM’s stock price has appreciated by approximately 60.18% since our coverage. The Mispricing Desk shares a similar view but emphasizes Globalstar’s structured Amazon acquisition spread and milestone-driven valuation.
Globalstar, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held GSAT at the end of the first quarter which was 22 in the previous quarter. While we acknowledge the risk and potential of GSAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GSAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
