3 Stocks to Avoid on False Rumors of Apple’s iPhone 13 Being Satellite Compatible By StockNews
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:) 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. These stocks should be avoided. Continue reading to find out more.
To make their business operations more efficient, businesses are turning increasingly to satellite communications (SATCOM). Companies with remote operations rely on satellite communications to enable them to track assets and monitor facilities in real time.
Pandemic-related disruptions to the SATCOM market are still a problem. Therefore, the industry players are concerned not only about technological advances but also regulatory and standard-setting decisions, protocols and capital financing and consumer-oriented digital market dynamics.
Despite the concerns surrounding the SATCOM industry’s growth prospects, shares of Iridium Communications Inc. (NASDAQ:), Globalstar Inc . (GSAT), and AST SpaceMobile Inc. (ASTS) skyrocketed in price based on rumors that Apple, Inc.’s (NASDAQ:) recently launched iPhone 13 will be satellite compatible. The speculation was refuted by mobile analysts, communication experts, and the trend reversed for these stocks. It might be prudent not to invest in these fundamentally low SATCOM stocks.
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