Amazon Considers $8.8 Billion Acquisition of Globalstar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AMZN?
Source: Fool
- Acquisition Talks: Amazon is in discussions to acquire Globalstar for $8.8 billion, which would further expand its presence in the low-earth orbit satellite market, although Globalstar only generated $273 million in revenue in 2025, indicating its lack of profitability.
- Market Competition: Amazon's LEO satellite business has deployed 180 satellites and plans to launch over 3,200, and while it still lags behind SpaceX's Starlink, acquiring Globalstar could enhance its competitive position in this emerging market.
- Investment Pressure: Amazon plans to invest up to $200 billion in cloud and AI infrastructure this year, and while acquiring Globalstar could provide new revenue streams for its core business, investors may be skeptical about this unprofitable company, especially given Amazon's 8% stock decline year-to-date.
- Stock Price Impact: Although the acquisition may make strategic sense, the high valuation of Globalstar at 32 times its trailing sales is likely to negatively impact Amazon's stock rather than drive it higher.
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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: 213.770
Low
175.00
Averages
280.01
High
325.00
Current: 213.770
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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