William Blair Downgrades Gogo (GOGO) to Market Perform on Starlink Competition and High Debt as AVANCE Migration Stalls Growth

Gogo Inc. (NASDAQ:GOGO) is one of the cheap penny stocks to invest in. On December 9, William Blair analyst Louie DiPalma downgraded Gogo to Market Perform from Outperform. The firm expressed concern over intensifying competition from Elon Musk’s Starlink. This external pressure is compounded by Gogo’s high net debt and the expectation that subscriber growth for its Air-to-Ground/ATG network will remain stagnant. The company’s growth is currently hindered by a multi-quarter transition period as it works to migrate its remaining Classic system users over to the newer AVANCE platform.

In its Q3 2025 earnings report, Gogo highlighted a period of intense product transition and record-breaking demand for its hardware. The company achieved a milestone in equipment shipments, delivering 437 ATG units during the quarter. This surge in hardware sales signals robust future installation activity as Gogo prepares to roll out its next-gen 5G, HDX, and FDX systems, which aim to provide streaming-quality speeds for the global business jet market.

William Blair Downgrades Gogo (GOGO) to Market Perform on Starlink Competition and High Debt as AVANCE Migration Stalls Growth

Strategically, the company is gaining traction in the MilGov (Military and Government) and international sectors. A major highlight was securing a global contract with VistaJet, which intends to deploy HDX and FDX connectivity across its entire fleet. The 5G service tier is expected to command twice the Average Revenue Per User of classic customers, as the new tech allows for data-heavy applications like video conferencing and streaming that were previously restricted,

Gogo Inc. (NASDAQ:GOGO), together with its subsidiaries, provides broadband connectivity services to the aviation industry in the US and internationally. The company’s product platform encompasses networks, antennas, airborne equipment, and software.

While we acknowledge the potential of GOGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOGO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.