Amazon (AMZN) Gets $300 Price Target From Morgan Stanley Following $11.6B Globalstar Acquisition

Key Highlights Amazon’s $11.6 billion Globalstar purchase strengthens its Leo satellite network capabilities Shares of AMZN climbed approximately 4% after the deal was revealed The acquisition delivers 24 active satellites, orders for 50+ additional units, and valuable L and S band spectrum rights Morgan Stanley’s Brian Nowak maintains an Overweight stance on AMZN with a $300 target, suggesting roughly 20% growth potential Capital expenditure concerns emerge as Amazon faces $200 billion in planned 2026 spending, potentially pressuring free cash flow In a strategic move to enhance its space-based connectivity ambitions, Amazon has sealed an agreement to purchase Globalstar for roughly $11.6 billion, positioning itself as a more formidable competitor to SpaceX’s Starlink service. Shares of AMZN rose by approximately 4% in response to the news. Amazon.com, Inc., AMZN Through this transaction, Amazon secures ownership of Globalstar’s 24 functioning satellites along with commitments for around 50 additional spacecraft. Perhaps more significantly, the deal transfers valuable L and S band spectrum licenses to Amazon—assets essential for enabling direct-to-device (D2D) satellite communication technology. D2D technology allows smartphones and other devices to establish connections with satellites in low Earth orbit without relying on traditional cellular infrastructure. Amazon has identified this as a priority market segment, with widespread deployment targeted for approximately 2028. Amazon will also assume control of Globalstar’s current partnership with Apple, which utilizes the satellite network to power Emergency SOS features, Messages, Roadside Assistance services, and Find My functionality on iPhone 14 models and later, plus Apple Watch Ultra devices. As part of the acquisition agreement, Amazon has both extended and enhanced this Apple collaboration. To put Amazon’s current position in perspective, the company has launched only 241 satellites to date. Under its 20...