Amazon Considers Acquisition of Globalstar Satellite Maker
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Acquisition Impact: Amazon is reportedly considering an $8.8 billion acquisition of satellite maker Globalstar, which could pressure Amazon's stock due to a valuation of 32 times its trailing sales, especially since Globalstar generated only $273 million in revenue in 2025.
- Market Competition Context: Amazon's LEO satellite business has deployed 180 satellites and aims to launch over 3,200 to compete with SpaceX's Starlink, although acquiring Globalstar won't significantly narrow the gap with SpaceX.
- Investment and Risks: Amazon plans to invest up to $200 billion in cloud and AI infrastructure this year, yet its stock has declined 8% year-to-date, primarily due to attacks on its data centers in the Middle East and rising oil prices.
- Strategic Significance: Acquiring Globalstar could provide a new revenue stream for Amazon's LEO satellite business and support its AWS cloud platform's expansion into edge networks and IoT devices, although investor enthusiasm for this unprofitable company remains low.
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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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