We came across a bullish thesis on Gogo Inc. (GOGO) on Twitter by Crussian17. In this article, we will summarize the bulls’ thesis on GOGO. Gogo Inc. (GOGO)'s share was trading at $6.97 as of April 17^th. GOGO’s trailing and forward P/E were 69.70 and 13.95 respectively according to Yahoo Finance.

A powerful satellite in the stratosphere sending and receiving signals for the company's services.

Gogo Inc. (GOGO) has reached a pivotal moment following the long-anticipated approval of its HDX LEO satellite connectivity product, a direct competitor to Starlink in the business aviation space. While this is a major milestone—especially with a significant waitlist and broad aircraft compatibility—the approval came three months later than expected, pushing revenue recognition and suggesting near-term revenue estimates may need to be revised downward. With new management now at the helm following the Satcom acquisition, there is an expectation that previously issued guidance, both short and long-term, may be tempered or withdrawn to reset expectations. Despite macroeconomic headwinds that could impact private jet purchases or charter activity, in-flight internet remains a low-cost, high-utility service, and historical trends—like COVID—suggest that subscriber churn is limited and usage rebounds with economic recovery.

On a more optimistic note, the Satcom acquisition could be transformational. The acquired business nearly doubles Gogo’s revenue base, brings operational synergies, and expands Gogo’s reach into government and military aviation through a larger salesforce and access to 12,000 additional aircraft. Meanwhile, the rise in short interest—now nearing 40% of float—signals heavy bearish sentiment, mostly tied to misconceptions about Starlink’s ability to disrupt Gogo’s core market. In reality, Gogo retains over 80% market share in business aviation, boasting world-class EBITDA margins and a product that caters to a segment Starlink largely ignores. Starlink’s focus on commercial aviation, which Gogo exited, and operational limitations on smaller aircraft further reduce direct competition.

The setup for Gogo is complex heading into earnings, with potentially lowered revenue guidance and limited forward outlook possibly clashing with improving free cash flow and hidden bullish catalysts like 5G. With shares around $6.90, the risk/reward looks skewed favorably. A post-earnings dip could offer a compelling entry point for long-term upside toward $20–30, especially if 5G potential re-emerges.

Gogo Inc. (GOGO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held GOGO at the end of the fourth quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of GOGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.