Iridium Communications Inc. (IRDM) experienced a significant price surge, soaring 7.50% during intraday trading on Thursday. The sharp upward movement indicates strong investor interest and buying activity in the satellite communications stock.

The rally appears to be directly linked to a Financial Times report that Amazon.com Inc. is in talks to acquire satellite provider Globalstar. This news has sparked broader buying activity across the satellite communication sector, with investors reconsidering the value of related companies like Iridium in light of the potential acquisition.

Analysts suggest that Iridium's valuable spectrum assets, particularly its scarce L-Band and S-Band spectrum, could attract interest from large players investing in direct-to-device services. The reported Globalstar approach has led investors to reassess the strategic value of Iridium's existing satellite fleet and spectrum holdings within the competitive satellite communications market.