Amazon (AMZN) Is Taking On SpaceX With 5,100 Satellites By 2028
- Amazon.com (NasdaqGS:AMZN) is pushing into direct-to-device satellite connectivity through its Leo subsidiary.
- The company plans to launch more than 5,100 low Earth orbit satellites by 2028 to support global communications.
- The initiative aims to address mobile coverage gaps worldwide for consumers, enterprises, and governments.
- This move expands competition with SpaceX in low Earth orbit connectivity and broadens Amazon's telecom ambitions.
Amazon.com is best known for e commerce and cloud computing, yet the company is also building a presence in global connectivity. The planned low Earth orbit constellation sits alongside existing efforts in devices, logistics and cloud, which could give Amazon multiple touchpoints with end users. For investors, this new project adds another business area with its own capital needs, regulatory hurdles and partnership requirements.
The direct-to-device focus means Amazon is aiming at phones and devices that people and organizations already use, not only fixed satellite terminals. How this project scales, how regulators respond to spectrum use and how competition with SpaceX develops are all likely to shape the importance of this move for NasdaqGS:AMZN over time.
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Investor Checklist for Amazon.com’s Satellite Push
Quick Assessment
- ✅ Price vs Analyst Target: Amazon.com trades at US$231.39, around 26% below the US$313.53 consensus target.
- ✅ Simply Wall St Valuation: The stock is flagged as trading about 56.1% below the estimated fair value.
- ❌ Recent Momentum: The share price has slipped about 0.6% over the past 30 days.
There's only one way to know the right time to buy, sell or hold Amazon.com. Head to Simply Wall St's company report for the latest analysis of Amazon.com's Fair Value.
Key Considerations
- 📊 The direct to device satellite plan could add a new telecom style revenue stream that sits alongside e commerce, cloud and devices for Amazon.com.
- 📊 Watch capital expenditure for the more than 5,100 satellites, the P/E of 27.4 versus the Multiline Retail average of 20.4, and any early customer or partner wins.
- ⚠️ The project may rely heavily on non cash items in reported earnings, and carries execution and regulatory risk as Amazon goes up against SpaceX.
Dig Deeper
For the full picture including more risks and rewards, check out the complete Amazon.com analysis. Alternatively, you can check out the community page for Amazon.com to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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