Why Gogo's Stock Is Soaring Today
Shares of in-flight networking specialist Gogo (NASDAQ: GOGO) soared on Thursday, rising as much as 17.1% on the announcement of a new satellite broadband contract. By 12:20 p.m. EST, the stock had retreated to a milder gain of 12%.
Gogo is leasing several gigahertz' worth of broadband services from satellite networking expert Hispasat's recently unveiled Amazonas Nexus satellite. When that satellite launches in the second half of 2022, it will replace an older and slower networking hub in geostationary orbit over the 61st meridian west. From that position, the satellite will provide coverage across the entire Americas from Alaska to the southern tip of Argentina.
"Through our partnership with Hispasat, Gogo 2Ku will continue to meet the growing demand for high-speed inflight connectivity," said Gogo CEO Oakleigh Thorne in a prepared statement.
Source Fool.com
