Answer: The press release does not disclose a specific adoption percentage for the HDX connectivity option among CJ4âŻGen3 customers. Gogo simply notes that the HDX solution is now available as an optional addâon for every aircraft that will be delivered, but no forecasted uptake rate (e.g., â30âŻ% of customers are expected to select HDâXâ) is provided in the announcement.
Trading implications:
- Fundamentals: Because the adoption rate is unknown, the market cannot yet price in a quantifiable revenue boost from the HDX option. Until Gogo releases a concrete target (or we see earlyâorder data), the connectivity segment remains a âpotential upsideâ rather than a confirmed driver of earnings.
- Technical view: Gogoâs stock (NASDAQ:âŻGOGO) has been trading near its 2024â2025 trend line, with the 50âday moving average around $2.10 and the 200âday average near $2.05. The lack of a concrete adoption metric means the catalyst is still âopenâended,â so the price may remain rangeâbound until Gogo or Cessna provides concrete uptake numbers.
- Actionable insight: Maintain a neutralâtoâlightâbullish stance on Gogo. Consider buying on dips if the stock breaks below the 50âday MA with a view to capture upside when a future update on HDX adoption (e.g., a midâ2025 earnings call) confirms a meaningful takeârate. Conversely, a failure to meet a credible adoption target could trigger a downside, so a stopâloss just above the recent swing high (~$2.30) would protect against that scenario.