Globalstar, Inc. stock (NASDAQ: GSAT) traded sharply lower on Tuesday, December 16, 2025, despite fresh operational news highlighting its licensed spectrum and private 5G ambitions. Shares were down about 8.5% at $63.20 in the latest trading update (after opening near $67.75 and swinging between $69.05 and $62.84), underscoring how sensitive GSAT has become to valuation and “what’s next” narratives after a huge run in 2025.
Two developments dominated today’s headlines:
- Deutsche Bank initiated coverage with a Hold rating and a $62 price target.
- Globalstar and Skydio announced a successful joint trial—described as the first drone flight on Globalstar’s Band n53 and XCOM RAN private 5G platform—aimed squarely at public safety and other mission-critical drone use cases.
Together, those updates paint a very 2025 kind of investing picture: the technology story keeps getting stronger, while the “price you pay for the story” is where the fight breaks out.
What moved Globalstar stock today (Dec. 16, 2025)
1) Deutsche Bank initiates GSAT at Hold with a $62 target
Deutsche Bank began coverage of Globalstar with a Hold rating and a $62 price target—below where the stock traded earlier in the session—adding a valuation speed bump to a name that has been driven as much by strategic optionality as by quarterly fundamentals. [1]
In the bank’s framing, Globalstar has improved in quality thanks to its pivot toward being a wholesale capacity provider and network operator (often discussed in the context of its Apple-backed direct-to-device ecosystem), which can support a more predictable earnings profile. But Deutsche Bank also argued that GSAT’s valuation multiples are elevated relative to typical wireless peers—highlighting the challenge of valuing a business that’s still scaling and has not been consistently profitable on a trailing basis. [2]
2) Skydio + Globalstar: first drone flight on Band n53 and XCOM RAN
On the same day the stock was sliding, Globalstar published operational news that reinforces the non-satellite half of its “satellite + spectrum + private 5G” thesis.
Globalstar said it completed a joint technology trial with Skydio, validating compatibility between the Skydio X10 drone platform and Globalstar’s licensed Band n53 spectrum, alongside XCOM RAN, Globalstar’s private 5G platform. The companies positioned this as a high-performance alternative to Wi‑Fi and traditional public cellular connectivity for drone operations—specifically emphasizing reliable command/control and streaming video performance. [3]
Globalstar also stressed that it holds full licensed rights to Band n53, describing the spectrum as “predictable, secure, and immediately available” for operational testing. It said XCOM RAN is designed for deterministic performance, high uplink throughput, and resilience in dense or challenging environments—exactly the conditions public safety agencies worry about when drones become tools rather than toys. [4]
That’s the push-pull in GSAT’s 2025 story: tangible progress on productization and partners, but a stock price that can move hard on any hint that the market is already pricing in the best-case future.
Why the Skydio trial matters for Globalstar’s “spectrum monetization” narrative
Globalstar’s investment case in late 2025 is increasingly about monetizing scarce, licensed spectrum and building a private 5G platform that customers can actually deploy—not just admire in a slide deck.
In the Skydio announcement, Globalstar described XCOM RAN as a next-gen private 5G approach that increases capacity versus earlier solutions and can run in shared spectrum—or leverage licensed Band n53 for a more controlled deployment. It also highlighted an architecture designed to simplify deployment in industrial environments. [5]
For investors, the strategic significance is straightforward:
- Drones are uplink-heavy. Video and telemetry stress upstream performance.
- Public safety customers value reliability and control more than bargain pricing.
- Licensed spectrum can be a differentiator when Wi‑Fi is congested or public cellular is overloaded, restricted, or unavailable.
It’s also notable that Globalstar has been signaling traction for XCOM RAN beyond drone use cases—such as industrial automation—suggesting management is trying to build a portfolio of “real customers with real deployments,” not just pilot programs. [6]
The bigger GSAT backdrop: Apple, direct-to-device, and takeover speculation
Apple’s investment and capacity tie-up remains the gravitational center
Globalstar’s relationship with Apple has been one of the most important structural changes to the company’s story. Reuters previously reported that Apple would invest up to $1.5 billion in Globalstar to support iPhone satellite communication services, including an equity component, and Globalstar indicated it would allocate 85% of its network capacity to Apple. [7]
Industry coverage has also pointed to Apple’s support funding a new “extended” satellite capability inside Globalstar’s spectrum footprint, reinforcing why many investors view GSAT as more than a traditional satellite-telecom operator. [8]
Sale process chatter (including SpaceX) remains a powerful “optional upside” catalyst
The takeover angle isn’t new, but it remains influential. Reuters reported in late October 2025 that Globalstar was exploring a potential sale and had held early discussions with SpaceX among other possible buyers, citing Bloomberg. Reuters also noted commentary that Globalstar’s chair had discussed a possible sale value above $10 billion, and emphasized Apple’s likely influence given its stake and capacity agreement. [9]
Deutsche Bank explicitly referenced this strategic-transaction backdrop in its initiation note, linking part of GSAT’s surge to M&A speculation and “takeout value” thinking. [10]
This matters because it changes how investors interpret everyday news. A standard product trial announcement (even a meaningful one) can get drowned out if the market’s core question is: Is this a standalone compounder… or a strategic asset on the auction block? [11]
Fundamentals check: what Globalstar reported in Q3 2025 and what it guided for 2025
In its Q3 2025 update, Globalstar reported record quarterly revenue of $73.8 million, and reiterated full‑year 2025 guidance of $260 million to $285 million in revenue with an adjusted EBITDA margin around 50%. [12]
The company attributed performance and momentum to a mix of:
- Wholesale capacity services (including reimbursed network-related costs),
- Commercial IoT subscriber growth and equipment sales,
- Ongoing investment in ground infrastructure and next-gen capabilities,
- And early commercialization steps for XCOM RAN (including an initial order tied to warehouse automation). [13]
The Q3 communications also emphasized progress toward its “Extended MSS Network” and related buildout. In the earnings call coverage, Globalstar referenced potential satellite launches planned for the first half of 2026, which investors will likely treat as a key milestone for delivery risk (and for whether the Apple-related business scales as expected). [14]
Network expansion: Brazil ground infrastructure upgrades as a signal of scale-up
Globalstar has been building out its ground footprint to support its third‑generation C‑3 satellite system and next-generation services, including IoT and D2D (direct-to-device). In early November 2025, the company announced the installation of eight new six‑meter C‑3 tracking antennas across four Brazilian ground station locations, and said the Brazil upgrades are part of a broader global expansion that includes up to 90 new tracking antennas supporting the C‑3 system. [15]
Infrastructure stories are rarely headline-grabbing in the way “SpaceX talks” are, but for a satellite/network operator, this is the plumbing that determines whether growth is feasible without service degradation. [16]
Analyst forecasts and price targets for GSAT: what changed as of Dec. 16, 2025
The new headline call: Deutsche Bank’s $62 target
Deutsche Bank’s initiation sets a $62 target, reflecting a more cautious view on valuation and risk/reward at current prices. [17]
Where broader consensus sits
Other data providers show a still-bullish—but wide—range of expectations:
- Investing.com’s consensus snapshot listed an average price target around the upper $60s, with a low estimate around $60 and a high around $75, alongside a 52‑week range reaching into the mid‑$70s. [18]
- MarketWatch’s analyst estimates page also displayed an Overweight average recommendation and an average target price around $67. [19]
- B. Riley reiterated a Buy rating in November and raised its target to $75, citing Q3 results and the strategic narrative backdrop. [20]
What those targets imply vs. today’s price
Using today’s $63.20 trade price:
- $62 (Deutsche Bank): about ‑1.9% downside
- ~$67–$67.5 (consensus range): about +6% to +6.8% upside
- $75 (B. Riley): about +18.7% upside [21]
The dispersion tells you something important: GSAT is not being priced like a boring telco. The market is trying to value a hybrid of satellite connectivity, spectrum scarcity, and platform optionality—and reasonable people will disagree on which piece dominates.
Technical and sentiment signals: “overbought” meets a fast pullback
Some coverage around GSAT has flagged momentum-driven conditions after the stock’s strong multi-month run, with references to “overbought” readings earlier in the move. [22]
By midday on Dec. 16, Investing.com’s technical dashboard readings reflected a more bearish posture after the selloff, showing multiple indicators tilted toward “Sell” or “Strong Sell” and some oscillators moving toward oversold territory. [23]
Technical signals don’t change the business, but they can influence short-term flows—especially in a stock where positioning and narrative have been doing a lot of the heavy lifting.
Key risks investors are still weighing
Even with real product and infrastructure progress, GSAT carries risks that justify why “Hold” can coexist with genuinely bullish long-term storylines:
- Valuation risk: Deutsche Bank explicitly called out elevated valuation multiples versus peers and uncertainty tied to profitability consistency. [24]
- Execution and timeline risk: The pathway includes further network buildout and satellite milestones, including launches discussed for 2026. [25]
- Customer concentration risk: Apple’s role is a strength—but also a concentration factor, given the reported 85% capacity allocation. [26]
- M&A headline volatility: Sale-process rumors (or lack of updates) can move the stock regardless of operating progress. [27]
What to watch next for Globalstar stock
For the rest of December and into early 2026, the market’s “next big proof points” for GSAT likely cluster around:
- More commercial wins for XCOM RAN (beyond pilots), building on early orders and today’s Skydio validation. [28]
- Direct-to-device and Apple ecosystem updates, including any clarity on cadence, coverage, and economics. [29]
- Any new reporting on strategic alternatives, since the SpaceX angle has become a recurring driver of investor imagination. [30]
- Next-gen network milestones, including the company’s stated launch planning direction for 2026. [31]
References
1. www.investing.com, 2. www.investing.com, 3. www.businesswire.com, 4. www.businesswire.com, 5. www.businesswire.com, 6. www.businesswire.com, 7. www.reuters.com, 8. www.lightreading.com, 9. www.reuters.com, 10. www.investing.com, 11. www.reuters.com, 12. www.businesswire.com, 13. www.businesswire.com, 14. www.investing.com, 15. www.businesswire.com, 16. www.businesswire.com, 17. www.investing.com, 18. www.investing.com, 19. www.marketwatch.com, 20. www.tipranks.com, 21. www.investing.com, 22. www.investing.com, 23. www.investing.com, 24. www.investing.com, 25. www.investing.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.businesswire.com, 29. www.reuters.com, 30. www.reuters.com, 31. www.investing.com
