Following Amazon’s recent acquisition of Globalstar, Goldman Sachs has offered investors a crucial perspective beyond the immediate headlines. The financial giant sees this deal as a strategic manoeuvre in the burgeoning satellite-based connectivity arena, signalling a potential shift in the competitive landscape.
The acquisition enables Amazon Leo, the company’s low Earth orbit satellite network, to offer direct-to-device (D2D) services, extending cellular coverage to customers in traditionally inaccessible areas. The agreement with Apple further solidifies Amazon’s position, integrating Leo’s satellite services into select Apple devices.
Goldman Sachs has reaffirmed its "buy" rating for Amazon, maintaining a 12-month price target of $275. This suggests a potential upside of 10.4% from the current trading price of $249.02.
Amazon’s commitment to its satellite venture, Leo (formerly Project Kuiper), represents an investment exceeding $100 billion. Goldman Sachs believes that the Globalstar acquisition accelerates Leo’s commercialisation, providing access to vital assets, broader spectrum capabilities, and a stronger alliance with Apple.
This development further propels Amazon’s recent stock performance, which has outpaced the market with gains of 16.4% over the past month and 17.6% over the last six months.
Project Leo aims to establish a satellite network functioning as a "cell tower in the sky," connecting previously unreachable customers to the digital world. This "internet bridge" has the potential to serve rural communities, businesses, and governments typically excluded from traditional network coverage.
The Globalstar acquisition enhances Amazon’s strategy of connecting to Amazon Web Services (AWS), enabling customers to seamlessly integrate satellite data into storage, AI tools, and analytics.
In Q4 2025, Amazon’s cloud service, AWS, generated $35.6 billion in sales, representing 16.7% of the company’s total revenue of $213.4 billion.
According to Synergy Research Group, AWS held a 28% share of the global cloud infrastructure market in the same quarter, maintaining its lead over Microsoft and Google.
| Metric | Value |
|---|---|
| Goldman Sachs Price Target | $275 |
| Potential Upside | 10.4% |
| AWS Q4 2025 Sales | $35.6 Billion |
| AWS Market Share (Q4 2025) | 28% |
