Bleecker Street short Gogo, says still understating 5G upgrade delays

In a recently published report, Bleecker Street Research said it is short Gogo. “GOGO has been a stagnant business for several years and faces revenue and market share loss to new entrants, including Starlink, as business jet owners wait to see a long-delayed 5G upgrade,” the report said. Gogo outsourced the development of this upgrade, and it “has been mired in delays.” Bleecker further states that, “On GOGO’s Q1 earnings call, GOGO’s CEO referenced a ‘minor chip hardware redesign’ that would push out the launch of Gogo 5G ‘a few months later than the previously stated fourth quarter of 2024.’ We believe this is either ludicrously hopeful or intentionally deceptive. GOGO’s suppliers tell a different story, and GOGO’s supply chain is plagued by many issues that are 1) continuing and 2) not being properly disclosed to investors.” “Conversations with GOGO distributors reveal that Starlink is already encroaching on GOGO territory and the competition will only heat up,” the report adds. Shares of Gogo are down about 1% to $7.95 in morning trading.