Key Stats for Amazon Stock
- Price change for Amazon stock in last 6 months: -3%
- $AMZN Stock Price as of Oct. 27: $253
- 52-Week High: $287
- $AMZN Stock Price Target: $332
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What Happened?
Amazon (AMZN) got a regulatory green light for its satellite plans as the FCC approved Amazon Leo’s $11.5 billion deal to buy Globalstar. Amazon Leo is the company’s satellite arm.
The deal gives Amazon Leo about two dozen Globalstar satellites and also adds Globalstar’s mobile-satellite spectrum.
The FCC said these assets will help Leo enter the direct-to-device market, which means phones and other devices can connect straight to satellites.
Amazon Leo has launched nearly 400 satellites since April 2025 and aims to put thousands in low Earth orbit by 2029.
Amazon has committed to investing more than $10 billion in Leo and plans to roll out commercial service by the end of 2026.
Apple is part of the story. Globalstar powers Emergency SOS and Find My on iPhone and Apple Watch. Amazon said it has signed an agreement with Apple to keep those services running.
Apple made up about 63% of Globalstar’s revenue last year and Amazon plans to acquire Apple’s stake in Globalstar, the FCC said.
Amazon praised the approval. It said the deal “brings us a step closer” to new connectivity for customers.
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What the Market Is Telling Us About Amazon Stock
This is a long-term growth story, not a short-term earnings event. It adds to the case for Amazon stock, which already has strong momentum elsewhere.
On the Q2 call, Amazon reported $200.6 billion in revenue, up 20%, and operating income was $27.5 billion, up 43%. AWS revenue grew 36.7%, its fastest pace in 18 quarters.
CEO Andy Jassy also said Leo is close to 400 satellites and already has meaningful revenue commitments from enterprises and governments.
The costs are high, and Amazon now expects about $220 billion in cash capital spending in 2026. Management said this will create free cash flow headwinds for now.
Competition is also steep. Starlink runs more than 11,000 satellites, and Amazon Leo has a lot of catching up to do.
For Amazon stock, Leo is a small piece today, but it gives the company a new market to chase.
Investors will likely watch how fast Leo launches service.
Q3 guidance calls for revenue of $197 billion to $202 billion, and operating income is guided to $22.5 billion to $26.5 billion.
How those plans land will shape Amazon stock in the months ahead.
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So what is Amazon stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
