Although satellite communication has garnered significant attention lately, the industry is still struggling to overcome pandemic-induced business disruptions. While a few stocks in this space, including Iridium Communication (IRDM), Globalstar (NYSE:GSAT) Inc. (SAT), and AST SpaceMobile (ASTS), advanced in price solely on rumors that AAPL’s iPhone 13 is satellite compatible, they plummeted shortly after mobile analysts denied such rumors. So, we believe these stocks are best avoided now. Read on to learn more. Businesses are increasingly turning to satellite communication (SATCOM) to make their operations more efficient. In addition, companies with operations in distant areas rely heavily on satellite communication to provide real-time asset and facility monitoring.
However, pandemic-induced business disruptions are still impeding the SATCOM industry. Consequently, industry participants are not only concerned about technological advancement but also regulatory decisions, standards and protocols, capital financing, and consumer-oriented digital market dynamics.
Despite the concerns surrounding the SATCOM industry’s growth prospects, shares of Iridium Communications Inc. (NASDAQ:IRDM), Globalstar Inc . (GSAT), and AST SpaceMobile Inc. (ASTS) skyrocketed in price based on rumors that Apple, Inc.’s (NASDAQ:AAPL) recently launched iPhone 13 will be satellite compatible. However, mobile analysts and communication specialists eventually refuted the speculation, resulting in a trend reversal for these stocks. So, we think it could be wise to avoid these fundamentally weak SATCOM stocks.