What Happened?
Shares of satellite communications provider Globalstar (NASDAQ:GSAT) jumped 2.4% in the afternoon session after Clear Street initiated coverage on the stock with a "Buy" rating and a $66.00 price target. Analyst Greg Pendy announced the move, marking the first time the research firm provided a rating for Globalstar. This initiation suggested confidence in the company's business model. The price target represented a significant potential upside from where the stock previously traded.
After the initial pop the shares cooled down to $44.73, up 3.3% from previous close.
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What Is The Market Telling Us
Globalstar’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 5% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. Trump targeted China's tightening controls on rare earth metals, which are vital components in many technology products from electric vehicles to defense systems. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market.
Earlier in the week, China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts viewed the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions and ahead of an anticipated meeting between the US and Chinese presidents.
Consequently, technology stocks with significant exposure to Chinese supply chains, such as Nvidia and AMD, experienced sharp declines. This downturn was exacerbated by the bearish sentiment surrounding a prolonged U.S. government shutdown, adding to overall market uncertainty.
Globalstar is up 40.7% since the beginning of the year, and at $44.73 per share, it is trading close to its 52-week high of $47.06 from October 2025. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $9,567.
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