Satellite Stock Soars on Acquisition Speculation Involving SpaceX

Shares of Globalstar experienced a dramatic surge this week as market speculation intensified regarding potential acquisition talks with Elon Musk's SpaceX. The satellite communications provider is reportedly evaluating a possible sale of the company, triggering enthusiastic market response.

The satellite communications company has engaged an investment bank to assess strategic alternatives, with preliminary discussions allegedly involving SpaceX. Market observers note that other potential suitors could still enter the bidding process, though no final decision regarding a sale has been reached.

Trading activity reflected the market's excitement, with Globalstar's stock catapulting 24% higher on Thursday. The equity reached $53.21 during the session before settling at $50.78. The upward momentum continued into Friday's trading, with shares changing hands around $54.41.

Apple's Significant Stake and Network Capacity

A crucial element driving acquisition interest is Globalstar's substantial relationship with technology giant Apple. The iPhone maker holds a 20% ownership position following a $1.5 billion investment in the satellite company. This substantial capital infusion secures emergency SOS services for Apple devices, with 85% of Globalstar's network capacity reserved exclusively for Apple's use. This arrangement positions Apple as an influential stakeholder with considerable sway over Globalstar's strategic direction.

Should investors sell immediately? Or is it worth buying Globalstar?

Key Financial Details:
* Acquisition rumors with SpaceX propelled shares upward by 24%
* Apple maintains 20% ownership following $1.5 billion investment
* Third quarter 2025 results scheduled for release after market close on November 6
* Current market capitalization stands at approximately $6.42 billion

Fundamental Health Check and Insider Activity

Whether the current valuation surge can sustain itself may become clearer when the company releases its third-quarter 2025 financial report on November 6. These figures will provide insight into the company's fundamental operational health beyond speculative activity.

Meanwhile, recent transactions by company executives present a contrasting narrative. Both Chief Financial Officer Rebecca Clary and CEO Paul E. Jacobs disposed of shares during September and October. This insider selling activity raises questions about whether the stock's dramatic ascent represents sustainable momentum or speculative excess.