William Blair Downgrades Gogo (GOGO) to Market Perform on Starlink Competition and High Debt as AVANCE Migration Stalls Growth

3 weeks ago 14

Maham Fatima

Sun, December 28, 2025 astatine 11:46 AM CST 2 min read

Gogo Inc. (NASDAQ:GOGO) is 1 of the cheap penny stocks to put in. On December 9, William Blair expert Louie DiPalma downgraded Gogo to Market Perform from Outperform. The steadfast expressed interest implicit intensifying contention from Elon Musk’s Starlink. This outer unit is compounded by Gogo’s precocious nett indebtedness and the anticipation that subscriber maturation for its Air-to-Ground/ATG web volition stay stagnant. The company’s maturation is presently hindered by a multi-quarter modulation play arsenic it works to migrate its remaining Classic strategy users implicit to the newer AVANCE platform.

In its Q3 2025 net report, Gogo highlighted a play of aggravated merchandise modulation and record-breaking request for its hardware. The institution achieved a milestone successful instrumentality shipments, delivering 437 ATG units during the quarter. This surge successful hardware income signals robust aboriginal installation enactment arsenic Gogo prepares to rotation retired its next-gen 5G, HDX, and FDX systems, which purpose to supply streaming-quality speeds for the planetary concern pitchy market.

William Blair Downgrades Gogo (GOGO) to Market Perform connected Starlink Competition and High Debt arsenic AVANCE Migration Stalls Growth

Strategically, the institution is gaining traction successful the MilGov (Military and Government) and planetary sectors. A large item was securing a planetary declaration with VistaJet, which intends to deploy HDX and FDX connectivity crossed its full fleet. The 5G work tier is expected to bid doubly the Average Revenue Per User of classical customers, arsenic the caller tech allows for data-heavy applications similar video conferencing and streaming that were antecedently restricted,

Gogo Inc. (NASDAQ:GOGO), unneurotic with its subsidiaries, provides broadband connectivity services to the aviation manufacture successful the US and internationally. The company’s merchandise level encompasses networks, antennas, airborne equipment, and software.

While we admit the imaginable of GOGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.