Even if you spend all day looking at markets, there are always new stocks, assets, and other things to discover. Today, many are likely hearing of Telesat Corporation for the first time after its shares soared over 50%. 👀
The small-cap Canadian satellite operator offers mission-critical communications services to broadcast, enterprise, and consulting customers worldwide. It primarily focuses on enterprise customers in governmental and commercial markets that direct-to-consumer competitors like SpaceX’s Starlink or Amazon’s Kuiper target. 📋
It’s been a bit of a sleeper since it came public at the end of 2021 on the Nasdaq and Toronto Stock Exchange, falling as much as 80% from its highs through the end of last year.
So what’s sending the stock back into orbit today? 🛰️
News that it’s swapping suppliers for its planned Lightspeed global internet network, potentially saving it about $2 billion. While the company expects to begin launching the first Lightspeed satellites in mid-2026, investors were thrilled to see this major cost savings. 🤩
Additionally, its second-quarter net income rose to $520 million, and revenues declined just 4% YoY. That caused executives to reaffirm their full-year 2023 revenue guidance.
The in-line results and cost-saving news were enough to renew investor interest in Telesat’s long-term prospects. $TSAT shares jumped 53% to one-year highs on the news. 🚀