Goldman Sachs’ blunt words for Amazon stock investors after big deal

Amazon (AMZN) conscionable completed a monolithic caller deal, and Goldman Sachs thinks investors request to spot the bigger picture.

For perspective, Amazon has entered into an statement to get Globalstar, allowing Amazon Leo to connection direct-to-device (D2D) services to its debased Earth orbit outer web and widen cellular sum for customers successful distant locations, a institution property merchandise shared. Amazon and Apple besides confirmed their agreement, which volition alteration Amazon Leo to powerfulness outer services for immoderate Apple devices.

Following the news, Goldman reiterated its bargain standing and near its 12-month terms people for Amazon banal astatine $275. With shares of the e-commerce elephantine trading astatine $249.02 successful the report, that points to a 10.4% upside from existent levels.

Instead of treating it arsenic a one-off M&A headline, Goldman Sachs views the determination arsenic a large play successful satellite-based connectivity, and a informing changeable to rivals.

Amazon has already dropped much than $100 cardinal into its outer effort, Leo, formerly known arsenic Project Kuiper.

The steadfast argues that the AI behemoth is marching toward commercialization, with the Globalstar woody giving it entree to adjacent much assets, much spectrum, and a stickier concern with Apple.

The improvement adds to the tremendous caput of steam Amazon stock’s been gathering of late.

Amazon banal has outperformed the broader market, gaining 16.4% implicit the past period and 17.6% implicit the past six months.

Project Leo is Amazon’s effort astatine gathering a outer web that fundamentally works similar a compartment operation successful the sky.

That’s immense due to the fact that it brings successful customers who antecedently couldn’t entree accepted networks and puts them into the ecosystem.

This proverbial "internet bridge" tin scope agrarian users, businesses, and governments that are typically extracurricular mean sum areas.

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Globalstar’s acquisition speeds these efforts and past some, feeding into Amazon’s broader strategy successful connecting to Amazon Web Services (AWS). That would alteration customers to propulsion outer information consecutive into storage, AI tools, analytics, and a full big of different stuff.

For perspective, Amazon’s unreality work generated $35.6 cardinal successful income retired of the company-wide full astatine $213.4 cardinal successful Q4 2025 (16.7% of full sales).

Separately, Synergy Research Group said AWS held a 28% stock of the planetary unreality infrastructure marketplace successful the aforesaid quarter, keeping its pb implicit Microsoft and Google.