AMZN
Amazon inks deal for Globalstar to challenge Musk's Starlink
Article Summary
HOLD- Amazon.com Inc. (NASDAQ: AMZN) announced on Tuesday that it would acquire satellite company Globalstar for about 11.5 billion dollars, as the online behemoth looks to compete with Elon Musk's rival satellite firm Starlink.
- The announcement sent shares of both companies skyward, with Amazon gaining 3.5 percent and Globalstar soaring 11%.
- Amazon has been working to ramp up its satellite network by deploying about 3,200 satellites in Earth's low orbit by 2029, roughly half of which should be in place by July due to regulatory deadline, and preparing to roll out satellite internet services later this year.
- Through the deal, Amazon adds Globalstar's two dozen satellites to its existing network of more than 200, with the satellite network designed for reliable, low-data connections directly to mobile devices or Direct-to-Device, or D2D.
- The technology removes the need for devices to connect to ground-based cell towers, making them crucial in powering emergency services and delivering connectivity in areas with limited cellular coverage.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 12.4% | 25% | 50.0 ptsMeets Minimum (12.4%) - Passes screener |
| EPS Growth Next 5Y ? | 18.0% | 25% | 50.0 ptsMeets Minimum (18.0%) - Passes screener |
| Target Price Upside ? | 12.8% | 20% | 50.0 ptsMeets Minimum (12.8%) - Target: $280.77 vs Current: $248.85 |
| Gross Margin % ? | 50.3% | 15% | 80.0 ptsVery Healthy (50.3%) - High-quality margins |
| Drawdown from 52-Wk High ? | -3.8% | 15% | 20.0 ptsBarely a Dip (-3.8%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About AMZN
- Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.
- The company operates through three segments: North America, International, and Amazon Web Services (AWS).
- It also manufactures and sells electronic devices, including Kindle, fire tablets, fire TVs, echo, ring, blink, and eero; and develops and produces media content.
- In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content.
- Further, it provides compute, storage, Artificial intelligence, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising.
- Additionally, the company offers Amazon Prime, a membership program.
- The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers.
- It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees.
- The company was incorporated in 1994 and is headquartered in Seattle, Washington.