Shares of satellite communications company Globalstar (GSAT) plummeted around 5% in premarket trading on Thursday, continuing the downward momentum from the previous session.
On Wednesday, GSAT stock tanked 17.8% to close at $1.57 after news broke that Apple had chosen to collaborate with SpaceX's Starlink network for satellite connectivity on iPhones, instead of using Globalstar as many investors had anticipated.
The unexpected partnership with SpaceX raised concerns that it could represent a shift away from traditional satellite providers like Globalstar. Sources indicate Apple has been quietly testing the Starlink service on iPhones and updated its software this week to support the technology, despite previous claims from T-Mobile that Starlink connectivity would be exclusive to Samsung devices.
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