Shares of Globalstar took a hit following the company's report on its fourth-quarter performance, cautioning investors about upcoming investments that may impact short-term margins.
Stock Performance
The stock saw a sharp decline of almost 11% to $1.55 on Wednesday, although it is still showing a positive trend with an increase of over 21% compared to the previous year.
Financial Highlights
Globalstar recorded a fourth-quarter revenue of $52.4 million, marking a substantial 27% growth from the previous year. Looking ahead, the company is eyeing revenue between $225 million to $250 million for 2024, a notable uptick from the $223.8 million seen last year.
Strategic Moves
In a strategic move, Globalstar appointed Paul Jacobs, former CEO of Qualcomm, to drive its growth trajectory. The company has also reached an agreement to compensate Jacobs' startup, Xcom, with company stock as a licensing fee for utilizing its technology aimed at enhancing wireless spectrum capacity.
Future Outlook
During a recent conference call with analysts, Chief Financial Officer Rebecca Clary emphasized the company's focus on investing in growth opportunities. Although this may lead to a temporary impact on margins, Clary expressed confidence that these investments will pave the way for new revenue streams, ultimately validating the decision.
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