Shares of Globalstar (NYSEMKT:GSAT) were rising today on seemingly no company-specific news. Rather, it appears that investors may be pushing up Globalstar's shares after Apple announced that it will hold a product event next week.
The satellite service tech stock jumped by as much as 15.8% this morning, but had gained a much tamer 3.1% as of 11:32 a.m. EDT.
Globalstar is a mobile satellite services company and investors have been hoping that Apple will release a new iPhone with satellite communication capabilities. Those hopes were dashed at Apple's iPhone event last month when the company unveiled its latest iPhone lineup without a satellite feature.
Yesterday, Apple announced another event, scheduled for Oct. 18, that appears to have sparked renewed hope that the tech company might still debut a product that utilizes satellite technology.
But those expectations are likely misplaced. Apple's upcoming event will likely focus on new MacBook Pro models, a new Mac Mini, and updated AirPods models.
Those products aren't expected to have any satellite capabilities, and thus wouldn't affect Globalstar's business.
Globalstar's stock tends to be very volatile and today's share price gains are a perfect example. Investors got excited about an upcoming Apple event, but there's very little chance that Apple will release a product that has any bearing on Globalstar right now.
Despite the volatility, Globalstar's stock is up 425% over the past year. Globalstar investors should be cautious about buying and selling shares on rumors and instead focus on the company's long-term potential for business growth.