Between Starlink and the US Army: The Challenges Shaking Gilat
The veteran satellite communications company's stock plummeted about 17% this week after a sharp cut in revenue forecasts, amid delays in satellite launches and competition from Starlink. In contrast, revenue from defense operations surged more…
Assessment
Gilat's stock drop of roughly 17 percent this week signals that its core satellite communication business is under serious pressure. Delays in satellite launches and competition from Starlink are cutting into revenue forecasts. The counterweight is a surge in defense revenue, up over 50 percent in a year, driven by U.S. Army orders. The question is whether military contracts can offset the commercial headwinds fast enough to stabilize the company.