The rally added to big gains for shareholders so far this year, but Gogo remains in deeply negative territory over longer time frames, down about 50% over the past 52 weeks.
Gogo announced earnings results late last month that had investors feeling a bit more optimistic about the business. Sales rose 16% year over year as the company signed up more customers across its commercial and business aviation divisions. Plummeting costs also helped Gogo significantly outpace management's fourth-quarter targets.
New CEO Oakleigh Thorne called 2018 a "transition year" for the business that included progress in boosting service quality and marching closer to net profitability. Gogo's biggest win, though, was finding a solution for engineering problems that had resulted in poor system availability on many flights.
With that issue behind it, management can now turn its focus toward investing in the business while reducing costs. Hitting the right balance there should allow cash outflow to moderate in 2019. Gogo is still in a difficult financial position, with cash burn reaching $214 million last year and projected to be more than $100 million in 2019. Thus, investors might want to wait for more signs of progress before diving into this stock.