Why Globalstar (GSAT) Crashed on Wednesday?

We recently published a list of These 10 Stocks Were Wednesday’s Worst Performers. In this article, we are going to take a look at where Globalstar, Inc. (NYSEAMERICAN:GSAT) stands among Wednesday’s worst-performing stocks.

The stock market declined on Wednesday, with all major indices finishing in the red, driven by losses in technology stocks.

The Nasdaq dropped 0.51%, while the S&P 500 and Dow Jones fell 0.47% and 0.31%, respectively.

Ten companies, mostly from the technology sector, led the downturn.  In this article, we will highlight the biggest decliners and examine the factors driving their performance.

To identify Wednesday’s biggest losers, we focused on stocks with a market capitalization of at least $2 billion and a daily trading volume of over $5 million.

Why Globalstar (GSAT) Palo Alto (PANW) is Crashing?

A satellite launch, representing the company’s two-way voice and data products.

Globalstar, Inc. (NYSEAMERICAN:GSAT)

Globalstar, Inc. (NYSEAMERICAN:GSAT) became the biggest loser in Wednesday’s trading, shedding 17.8 percent to close at $1.57 apiece after news that technology giant Apple Inc. chose to collaborate with Globalstar’s largest competitor SpaceX in linking the Starlink network into the latest iPhone software.

The unexpected alliance with SpaceX dampened the sentiment of Globalstar investors over fears that it represents a potential shift away from reliance on traditional satellite communications providers like Globalstar (NYSEAMERICAN:GSAT).

According to sources privy to the matter, Apple has been quietly testing the Starlink service on its iPhones and updated its software earlier this week to support the technology. The development is particularly surprising, as T-Mobile had previously announced that Starlink connectivity would be exclusive to Samsung devices, including models like the Z Fold and S24.

Overall, GSAT ranks 1st on our list of Wednesday’s worst-performing stocks. While we acknowledge the potential of GSAT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GSAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.