CAST Stock Pulls Back After 420% Rally Last Week – But Retail Bulls Are Not Backing Down

• Last week, FreeCast announced a reseller agreement with Starlink Business Services. 
• The company’s shares have rallied more than 420% in the last week alone. 
• Through the deal, FreeCast said it could benefit from expanding its reach into multiple markets and exploring various revenue streams.

Shares of FreeCast Inc. (CAST) soared over 420% last week, its best performance since the company went public in March, after the company announced a reseller agreement for SpaceX’s (SPCX) Starlink Business services.

While the company’s shares fell about 9% in the overnight session late Sunday, retail traders are continuing to eye a further climb next week.

The microcap streaming company has garnered significant attention among retail traders on Stocktwits following the deal announcement, with message volume jumping 166% in the last 24 hours, according to platform data, as investors actively discussed the stock’s performance.

CAST Stock: What’s Retail Saying?

On Stocktwits, retail sentiment declined from ‘extremely bullish’ to ‘bullish’ territory over 24 hours, even as message volumes stayed at ‘extremely high’ levels.

One bullish user said, “excited for tomorrow morning. $16.20 is reasonable. Think a low opener would be $14.40 but should be right around the $15 mark. See everyone then!” This indicates an upside potential of about 86% compared to the stock’s last close of $8.07 on Thursday.

Another bullish user said, “This stock is continuing  its bullish trend. Next level $10 for a continuation  of momentum.”

A third user predicted a price target of $22, indicating an upside potential of more than 172% from its last close.

How Will The Starlink Deal Benefit FreeCast?

Last week, the Florida-based company said that it had entered into a reseller agreement for Starlink Business services that would enable it to offer enterprise-grade satellite broadband connectivity alongside its growing portfolio of media, television, advertising, and digital engagement solutions.

Through the deal, FreeCast said it could benefit by expanding its reach into enterprise and community markets such as multifamily housing, student housing, hotels, healthcare systems, senior living facilities, and underserved rural areas.

The agreement with Starlink also opens up multiple revenue opportunities, including broadband subscriptions, streaming TV services, advertising, sponsorships, platform licensing, and e-commerce, while positioning the company as a one-stop provider of both connectivity and digital media services.

"Connectivity and content have historically been delivered separately," William Mobley, CEO of FreeCast said in a statement.

"This relationship allows FreeCast to combine enterprise broadband access with streaming television, local content, advertising, community engagement, and digital commerce solutions, creating a more comprehensive offering for organizations serving large groups of consumers."

Even after the deal announcement, CAST shares are down 75.5% from their opening price of $33.

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