SpaceX Faces Intensifying Competition from Amazon's Satellite Network
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Starlink Profitability: SpaceX operates over 10,000 Starlink satellites, projected to generate $10.4 billion in revenue by 2025, accounting for 70% of total sales, highlighting its strong profitability in the satellite communications market.
- Amazon Leo Initiative: Amazon's Leo satellite network has launched 300 satellites and plans to expand through a $11.6 billion acquisition of Globalstar, although it still needs to reach at least 1,618 satellites for commercial service, indicating its ambitions in satellite communications.
- Competitive Risks: With Amazon aiming to launch beta service by the end of 2026, SpaceX may face pricing pressure that could reduce its profits, particularly as Starlink's high profit margins attract competitors' interest.
- FCC Regulatory Dynamics: Amazon has requested an extension from the FCC to meet its 1,618 satellite target, and it is expected that the FCC will support this request to promote market competition, which could impact SpaceX's market position and future profitability.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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