Introduction to GOGO
Gogo is a company that provides connectivity on private airplanes. Until now, it has focused on flights within North American territory, but with the launch of a new product and the acquisition of another company, its target market has expanded worldwide. We published an investment thesis on this small-cap with a market cap of just over $1 billion only 10 days ago. Both the thesis and the model are available on our website.
GOGO 3Q24 Results
This Tuesday, Gogo released its 3Q24 results that exceeded market expectations, despite a slowdown in demand for its products due to the imminent arrival of next-generation technology (the LEO product is still on schedule to launch at the end of this year) and increased legal costs (litigation and M&A) during the quarter.
This has led to a 35% increase in the stock price. We previously mentioned that this was a peculiar situation, with a high number of shorts, and that any positive developments could potentially eliminate the negativity surrounding the company due to Starlink’s entry into commercial aviation, causing this kind of jump.
