15 Worst 52-Week Low Stocks to Buy Now According to Short Sellers

13. Gogo Inc. (NASDAQ:GOGO)

52 Week Range: $6.72 – $12.57

Current Share Price: $6.88

Short % of Shares Outstanding: 8.77%

Number of Hedge Funds holding stakes as of Q2 2024: 28

Gogo Inc. (NASDAQ:GOGO) is a communication services company that provides broadband connectivity services to the aviation industry. Its product platform includes networks, antennas, and airborne equipment and software. It offers in-flight systems, services, aviation partner support, and engineering. It also offers voice and data, in-flight entertainment, and other services.

The stock has been under pressure for most of the year, tanking to 52-week lows. The underperformance stems from investors reacting to reports that the company faces an uncertain future after United Airlines inked a deal with Starlink.

The Starlink deal has the potential to negatively affect Gogo Inc. (NASDAQ:GOGO)’s prospects as a leading provider of inflight connectivity and entertainment. Additionally, the company is facing challenges with the direct connection of satellites to cellular technologies.

The challenges were evident as the company delivered weak second-quarter results that fuelled a sell-off on short interest, rising to 8.77%. Revenue in the quarter was down 1% to $102.1 million as Net income plummeted 99% yearly to $0.8 million. Disappointing financial results are one of the reasons Gogo remains one of the worst 52-week low stocks to buy now, according to short sellers.

Amid the disappointing financial results, Gogo Inc. (NASDAQ:GOGO) has inked a long-term deal with Airshare, a quickly growing private jet service, to provide cutting-edge in-flight internet services. This collaboration extends from a prior connection between the firms, intending to enhance the rest of Airshare’s aircraft within the next year.

Additionally, it has confirmed the setup of its Gogo Galileo HDX system on a Bombardier (OTC: BDRBF) Challenger 300, signifying a major milestone in the commercial introduction of its new Low-Earth-Orbit high-speed internet service.

Even though Sage experienced an impressive increase in revenue by 837.55% in the past year, ending in Q2 2024, there are worries about its financial stability. This is shown by a negative gross profit margin of -213.59%, which means expenses are much higher than the income generated.

During June 2024, 28 out of the 912 hedge funds covered by Insider Monkey’s research had invested in the firm. Gogo Inc. (NASDAQ:GOGO)’s largest hedge fund shareholder is Chet Kapoor’s Tenzing Global Investors as it owns $20.56 million worth of shares.