What Happened?

A number of stocks fell in the morning session after a surprisingly weak U.S. jobs report was released, fueling concerns about a slowing economy. 

The U.S. economy added only 73,000 jobs, falling significantly short of economists' expectations, while figures for May and June were revised down, erasing 258,000 previously reported jobs. The professional and business services industry itself shed 14,000 jobs. This data points to a cooling labor market, fueling concerns of a slowing economy. A weaker economic outlook often leads to reduced corporate spending on key services like IT consulting and professional staffing, which directly impacts the sector's revenue and growth prospects. The report immediately increased investor expectations of an interest rate cut by the Federal Reserve.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Industrial & Environmental Services company UniFirst (NYSE: UNF) fell 3.1%. Is now the time to buy UniFirst? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Dell (NYSE: DELL) fell 3.1%. Is now the time to buy Dell? Access our full analysis report here, it’s free.
• Satellite Telecommunication Services company Globalstar (NASDAQ: GSAT) fell 4.8%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company U.S. Cellular (NYSE: USM) fell 3.7%. Is now the time to buy U.S. Cellular? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company Telephone and Data Systems (NYSE: TDS) fell 3%. Is now the time to buy Telephone and Data Systems? Access our full analysis report here, it’s free.

Zooming In On Globalstar (GSAT)

Globalstar’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 25 days ago when the stock gained 5.4% on the news that the company announced it signed a launch services agreement with SpaceX. 

The deal is for a Falcon 9 launch to send the next set of Globalstar's satellites into orbit, which are being built by Macdonald, Dettwiler and Associates Corporation (MDA). This launch is part of a 2022 satellite procurement agreement with MDA and will add to Globalstar's existing second-generation satellite constellation. According to Globalstar CEO Dr. Paul Jacobs, the agreement with SpaceX is a key step in the company's plan to construct and launch its new satellites. He stated that the new satellites will improve the company's ability to deliver high-quality satellite services to its customers over the long term. The company expects the launch to occur next year.

Globalstar is down 26.8% since the beginning of the year, and at $23.28 per share, it is trading 32.2% below its 52-week high of $34.35 from December 2024. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $4,031.

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