AMZN
Amazon's $11.6 billion Globalstar deal will not fix rocket launch bottleneck, analysts say
Article Summary
BUY- Amazon.com Inc. (NASDAQ: AMZN) announced a $11.6 billion acquisition of Globalstar, strengthening its satellite and wireless infrastructure ambitions, but analysts warn that the deal will not address a crippling rocket shortage needed to build out a network capable of rivaling SpaceX's Starlink network.
- Rocket shortages, manufacturing disruptions and launch setbacks mean Amazon has deployed just 243 of the 3,236 satellites it promised in 2019 to put into low-Earth orbit to beam internet to consumers, businesses, and governments, with the tech giant even tapping rival SpaceX's Falcon 9 rockets for launches highlighting constraints on how fast it can build out its network.
- SpaceX has deployed Starlink at rapid pace using its own rockets, building a commanding lead in scale and coverage with a network of 10,000 satellites, while Amazon asked the U.S.
- Federal Communications Commission for a two-year extension to deploy about 1,600 satellites, roughly half of its planned constellation, but the FCC has yet to rule on the request.
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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 ? | 12.2% | 20% | 50.0 ptsMeets Minimum (12.2%) - Target: $280.77 vs Current: $250.24 |
| Gross Margin % ? | 50.3% | 15% | 80.0 ptsVery Healthy (50.3%) - High-quality margins |
| Drawdown from 52-Wk High ? | -3.2% | 15% | 20.0 ptsBarely a Dip (-3.2%) - 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.