Globalstar, Inc. (NASDAQ:GSAT) shares are trading higher Wednesday afternoon after CNBC reported that SpaceX has confidentially filed for an initial public offering, a deal that could value the company at more than $1.75 trillion and rank as the biggest IPO in U.S. history.

SpaceX Filing Lifts Sentiment Across Satellite And Space Infrastructure Names

The filing adds a fresh catalyst to the broader space trade and appears to be lifting sentiment around publicly traded satellite and communications names such as Globalstar.

Globalstar is a telecommunications infrastructure company built around a low-Earth-orbit satellite network, wholesale satellite capacity and terrestrial spectrum assets, so a blockbuster SpaceX listing can reset how investors think about the scarcity and strategic value of satellite communications businesses.

Record SpaceX IPO Could Reprice The Broader Public Space Ecosystem

A SpaceX IPO also has the potential to expand investor attention across the entire listed space ecosystem. If the market starts assigning richer valuations to launch, orbit and satellite-connectivity platforms after seeing SpaceX come public at a massive valuation, smaller incumbents like Globalstar can benefit from valuation read-through, renewed retail interest and sharper focus on their own asset base and network expansion story.

Globalstar's Existing SpaceX Launch Ties Add A More Direct GSAT Read-Through

There is also a more direct strategic angle: Globalstar already has launch agreements with SpaceX tied to its replacement satellites and third-generation network buildout. That makes the SpaceX filing relevant not only as a sentiment catalyst, but as a reminder that Globalstar is tied to one of the most important operating platforms in the space economy.

Globalstar's Next Big Test Arrives With May Earnings

Looking further out, the next major catalyst for the stock arrives with the May 7 (estimated) earnings report.

  • EPS Estimate: Loss of 1 cent (Up from Loss of 16 cents YoY)
  • Revenue Estimate: $70.59 million (Up from $60.03 million YoY)

GSAT Shares Surge Wednesday Afternoon

GSAT Price Action: Globalstar shares were up 5.96% at $70.38 at the time of publication on Wednesday, according to Benzinga Pro data.

Image: Shutterstock