Wall Street closes at a record for the first time since end of January
Investing.com - Citizens reiterated a Market Outperform rating and $315.00 price target on Amazon.com (NASDAQ:AMZN) following the company’s acquisition announcement. The stock, trading at $248.97 with a market cap of $2.67 trillion, has surged 12% over the past week and sits near its 52-week high of $258.60.
Amazon announced the acquisition of Globalstar for a total transaction value of $11.7 billion. Globalstar operates a direct-to-device service with low-frequency spectrum.
Citizens said the deal accelerates Amazon’s ability to offer a consumer subscription service. The firm noted Globalstar’s spectrum and gateway stations make it easier to integrate capacity from Amazon’s Leo constellation. According to InvestingPro analysis, Amazon currently trades above its Fair Value, though the company maintains strong fundamentals with $716.92 billion in revenue and 12% growth. For deeper insights, investors can access Amazon’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
The analyst firm said global mobile telecom service spend is approximately $800 billion according to PWC. Citizens expects the integration to pull forward deals and revenue while improving returns on Amazon’s Leo constellation.
Citizens said it expects AWS to be supply constrained for multiple years as more compute supply comes online in 2026. The firm noted Amazon’s push to offer faster service across a wider geographic footprint could support Online Store growth.
In other recent news, Amazon has announced its acquisition of Globalstar, a move aimed at expanding its satellite services. The merger agreement allows Globalstar stockholders to receive either $90.00 in cash or 0.3210 shares of Amazon common stock per share, with cash elections limited to 40% of total shares. This acquisition is seen as a strategic step to enhance Amazon’s satellite services, positioning it to compete with SpaceX’s Starlink. Truist Securities reiterated a Buy rating on Amazon’s stock, highlighting the Globalstar deal as a positive development for Amazon’s satellite service expansion.
Additionally, Amazon’s cloud division launched Amazon Bio Discovery, an AI tool designed to accelerate drug discovery. This platform provides researchers access to over 40 AI biology models, enabling them to conduct complex computational workflows without needing coding expertise. The tool aims to assist scientists in generating and evaluating potential drug molecules, combining computational design with wet-lab validation. Jefferies commented on the launch, noting that it allows scientists to accelerate research processes significantly. These recent developments highlight Amazon’s strategic investments in both satellite services and biotechnology.
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