AMZN
Amazon to buy Globalstar for $11.6bn to expand LEO and D2D services
Article Summary
HOLD- Amazon.com Inc. (NASDAQ: AMZN) agreed to acquire Globalstar for approximately $11.6bn in a move to expand its Amazon Leo low Earth orbit satellite network and enable direct-to-device (D2D) services.
- Globalstar is a mobile satellite services operator with experience in non-geostationary orbit satellites and D2D technology providing communications services including support for critical and emergency situations to customers globally.
- The acquisition of Globalstar will allow Amazon to extend cellular coverage to areas beyond the reach of existing terrestrial networks, with Globalstar stockholders receiving either $90 in cash or 0.3210 shares of Amazon stock per Globalstar share subject to a 40% threshold for cash elections.
- Completion of the acquisition is targeted for 2027 pending regulatory clearance and achievement of satellite deployment goals, with Amazon Leo's next-generation D 2D satellite system scheduled for deployment from 2028 expected to support voice, data, and messaging for mobile and cellular devices.
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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 ? | 12.9% | 20% | 50.0 ptsMeets Minimum (12.9%) - Target: $280.77 vs Current: $248.70 |
| 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.