Market value: $2.7 billion
Analysts' opinion: 3 buy, 1 overweight, 2 hold, 0 underweight, 1 sell
Iridium Communications (IRDM, $23.70) has the only mobile voice and data satellite communications network to span the world. It does this by linking together 66 Low Earth Orbit (LEO) satellites, which provide users high-quality voice and data connections anywhere on the planet.
Not content to rest on its laurels, Iridium is in the final stages of building Iridium Next - its second-generation satellite network that will provide users with higher speeds and bandwidth across the globe.
This next-generation network caught the attention of Amazon.com (AMZN). Iridium recently announced that it has joined the Amazon Web Services (AWS) Partner Network and is working with the cloud-computing and e-commerce giant to develop CloudConnect, a satellite cloud-based solution that will enable AWS customers to expand their Internet of Things coverage around the world.
Iridium has been growing steadily for years, and CloudConnect could keep the momentum going. In the second quarter, it grew commercial IoT subscribers by 25% to 576,000, 55% of its overall subscriber base. In Q3, that number reached 612,000 customers - and Iridium updated its full-year outlook for total service revenue growth and operational EBITDA.