Globalstar’s Infrastructure Push: A Strategic Bet on IoT and Direct Connectivity

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Globalstar is currently executing a significant expansion of its ground infrastructure network, with a key project underway in South Korea. This strategic initiative is designed to bolster the third generation of its C-3 satellite system and enhance capacity for Internet of Things (IoT) and Direct-to-Device (D2D) services. The central question for investors is whether this capital expenditure will successfully accelerate commercialization and drive revenue growth.

The satellite communications sector has demonstrated remarkable strength. Over the past year, the industry surged by 234.9%, dramatically outperforming the S&P 500's 18.1% gain and the 25.6% advance in the Zacks Computer and Technology sector. Within this vibrant space, Zacks Equity Research identifies Globalstar as one of three notable stocks to watch.

The company's operations are currently supported by steady wholesale capacity services and commercial IoT revenue, the latter fueled by gross activations. Furthermore, Globalstar appears to be capturing market share in U.S. government and defense contracts. Despite these positives, Zacks maintains a #3 (Hold) ranking on the stock and projects a 2025 loss of 4 cents per share, an estimate unchanged over the past week. Over the last twelve months, Globalstar's share price has climbed 125.2%.

Recent trading shows volatility. The stock closed at $60.16 on January 16. Earlier in the month, on January 2, it gained 5.05% to reach $64.12. This price positioned it slightly below the 20-day moving average of $65.24, but well above the 50-day ($58.48) and 200-day ($34.19) averages. Its 52-week range spans from $17.24 to $74.88.

A Global Ground Station Expansion

The infrastructure program is both specific and ambitious. At the Yeo-Ju ground station in South Korea, the company is installing three new six-meter C-3 tracking antennas. This site is part of a broader global blueprint that envisions up to 90 new tracking antennas in total. The construction effort encompasses 15 sites across nine countries on four continents.

Key Details of the Infrastructure Plan:
* Installation of three new C-3 tracking antennas at the Yeo-Ju facility in South Korea.
* A global target of deploying up to 90 new tracking antennas.
* The upgrade supports the enhanced capabilities of the third-generation C-3 satellite system.
* Primary goals include improved service quality, increased network redundancy, and expanded support for IoT and D2D solutions.
* Projects are active across 15 locations in nine different nations.

Assessing the Risks and Future Trajectory

The strategic rationale for the build-out is clear: to elevate service quality and redundancy, thereby creating the foundation for new revenue streams from IoT and D2D applications. However, translating this infrastructure investment into near-term sales growth depends on several execution factors. These include the timely activation of the new antennas, seamless technical integration, and a rapid pace of customer onboarding. Any delays, technical hurdles, or a sluggish commercialization process could temper revenue acceleration.

Additional macro-level challenges persist. The company must navigate broader economic uncertainties, trade policies, inflationary pressures, supply chain issues, and the substantial upfront investment costs associated with long payback periods. While the longer-term trend appears constructive, these combined risks—coupled with the expectation of a slightly negative 2025 result—leave the equity technically vulnerable to short-term selling pressure.

The path forward hinges on execution: Successful, on-schedule activation of the new C-3 antennas, paired with accelerated customer acquisition, would likely establish a firm base for rising IoT and D2D income. Should delays occur, the near-term growth potential may remain constrained.