Amazon.com Inc.‘s (NASDAQ:AMZN) recent $11.7 billion acquisition of satellite operator Globalstar Inc. (NASDAQ:GSAT) has strengthened Wall Street's bullish outlook, with Citizens reiterating its “Market Outperform” rating and a $315 price target, representing a 26.5% upside from current levels.
Strategic Satellite Expansion
Citizens analyst Andrew Boone views the Globalstar acquisition as a major catalyst for Amazon's long-term connectivity strategy. The deal gives Amazon access to operational direct-to-device services and valuable low-frequency spectrum, directly supporting its growing satellite network.
“Strategically, the deal accelerates Amazon’s ability to offer a consumer subscription service as Globalstar has a scaled and operational direct-to-device service,” Boone noted.
The analyst emphasized that this move positions Amazon to tap into the massive ~$800 billion global mobile telecom market. Over time, Amazon could bundle a direct-to-consumer satellite subscription into its popular Prime membership, although Boone acknowledges this consumer offering is still “years away.”
Financially, integrating Globalstar’s spectrum and gateway stations makes it easier to monetize Amazon’s growing capacity, pulling forward revenue opportunities.
AWS And AI Demand Fuel Long-Term Growth
While the satellite deal underscores Amazon's focus on massive new markets, Citizens highlighted that near-term attention remains heavily on Amazon Web Services (AWS) and its ability to scale compute supply.
Boone pointed out that AWS growth is being aggressively driven by enterprise artificial intelligence (AI) demand, justifying the company’s substantial capital expenditures.
“While we acknowledge the size of Amazon’s CapEx as this is a bet that AI demand will continue in the future, with the explosion of broader AI adoption from enterprise in 2026, we expect AWS to be supply constrained for multiple years,” the analyst wrote.
He added that the payback on this surging AI demand “seems ever more certain, which we believe can help shares to rerate.”
With Amazon currently trading at roughly $249, Citizens believes the powerful combination of an expanding global telecom footprint and robust, AI-driven AWS growth makes the tech giant an attractive long-term play.
AMZN Stock Gains In 2026
AMZN stock is up 7.88% year-to-date, while the Nasdaq-100 index is up 2.52% over the same period. Furthermore, the stock was up by 15.08% in the last six months but higher by 36.73% over the year.
The stock closed Tuesday 3.81% higher at $249.02 apiece. Benzinga’s Edge Stock Rankings indicate that AMZN maintains a strong price trend in the short, medium, and long terms, with a solid growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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