How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Iridium Communications (IRDM) ten years ago? It may not have been easy to hold on to IRDM for all that time, but if you did, how much would your investment be worth today?
Iridium Communications' Business In-Depth
With that in mind, let's take a look at Iridium Communications' main business drivers.
Founded in 2000 and headquartered in McLean, VA, Iridium Communications Inc. is the only satellite communications company that offers dedicated commercial global voice and data communications. The company delivers an array of reliable and low latency communications services to businesses, consumers, wireline and wireless telecommunications operators and Internet service providers. The company also offers commercial satellite communication services to the U.S. and foreign governments, and other non-governmental organizations.
Iridium operates the world’s largest commercial constellation with a mesh architecture of 66 operational Low-Earth Orbit satellites to route traffic using radio frequency crosslinks. The inimitable architecture provides impeccable performance by minimizing the need for ground facilities, thereby expanding the global footprint of its services. The company’s next-gen satellite constellation, Iridium NEXT, enables higher speeds for new products and provides service continuity with diverse global broadband offering.
The communications and satellite company sells products and services to commercial end users through a wholesale distribution network, encompassing approximately 100 service providers, 285 value-added resellers and 85 value-added manufacturers. Iridium’s satellite and communications network solutions are best suited for industries such as aviation, emergency services, mining, forestry, maritime, oil and gas, transportation and utilities. The company operates under a single business segment, offering global satellite communications services and products.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Iridium Communications ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $4,962.26, or a gain of 396.23%, as of August 1, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 198.01% and the price of gold increased 5.78% over the same time frame in comparison.
Analysts are forecasting more upside for IRDM too.
Iridium’s Q2 performance gained from expanding subscriber base driven by the demand for consumer-oriented devices and higher services’ revenues. Iridium expects commercial service revenues to benefit from growth in IoT, ongoing activations and solid uptake of the company’s broadband services going ahead. It delivers cost-effective broadband services through its Certus technology and shares strategic relationships with government organizations. Iridium’s mobile and satellite network leverages the interlinked mesh architecture of 66 satellites to provide services across territories. However, supply chain disruptions pose a significant headwind. Stiff competition from regional market suppliers restricts its potential to attract new customers. Higher costs and increased lead time to obtain spectrum licenses added concerns.
The stock is up 17.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Iridium Communications Inc (IRDM) : Free Stock Analysis Report
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