Amazon (AMZN) just closed a massive new deal and Goldman Sachs thinks investors need to look at the bigger picture.
For perspective, Amazon has signed an agreement to acquire Globalstar, which will allow Amazon Leo to offer direct-to-device (D2D) services to its low-Earth orbit satellite network and expand cellular coverage for customers in remote locations, according to a company press release. Amazon and Apple also confirmed their agreement, which will allow Amazon Leo to power satellite services for some Apple devices.
Following the news, Goldman reiterated its buy rating and left its 12-month price target on Amazon shares at $275. With shares of the e-commerce giant trading at $249.02 in the report, that points to an increase of 10.4% from current levels.
Rather than treating it as a one-off M&A headline, Goldman Sachs sees the move as a major play in satellite connectivity and a warning to rivals.
Amazon has already invested more than $100 billion in its Leo satellite effort, formerly known as Project Kuiper.
The firm maintains that the AI ​​giant is moving toward commercialization, and the deal with Globalstar gives it access to even more assets, more spectrum and a stronger partnership with Apple.
The development adds to the tremendous momentum that Amazon stock has been building lately.
Amazon shares have outperformed the broader market, gaining 16.4% over the past month and 17.6% over the past six months.
Project Leo is Amazon’s attempt to build a satellite network that essentially works like a cell phone tower in the sky.
This is huge because it brings in customers who previously couldn’t access traditional networks and puts them into the ecosystem.
This proverbial “Internet bridge” can reach rural users, businesses and governments that are typically outside normal coverage areas.
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The acquisition of Globalstar accelerates these efforts and then some, fueling Amazon’s broader strategy of connecting to Amazon Web Services (AWS). That would allow customers to send satellite data directly to storage, AI tools, analytics, and a host of other things.
For perspective, Amazon’s cloud service generated $35.6 billion in company-wide sales, $213.4 billion in Q4 2025 (16.7% of total sales).
Separately, Synergy Research Group said AWS had a 28% share of the global cloud infrastructure market in the same quarter, maintaining its lead over Microsoft and Google.
Amazon’s Globalstar deal looks incredibly smart on paper, but it’s not a failure.
Here’s what could go wrong.
The biggest problem remains launch cadence. Amazon has launched only 243 of the 3,236 satellites it proposed, so the purchase alone does not solve the bottleneck.
He price tag That’s a big deal, as the deal’s valuation stands at nearly 40 times 2026 sales for a capital-intensive business.
Amazon is planning approximately $200 billion in capital expenditure 2026according to CNBC, primarily attributable to AWS and AI, adding another expensive project to a crowded spending cycle.
The classic treat risks There are still outstanding issues, including litigation, regulatory approvals and unknown liabilities, that could delay closing.
Amazon will buy Globalstar for $90 per share in a combination of cash and stock in a $11.57 billion deal, according to Reuters, granting access to the latter company’s powerful satellite assets, infrastructure and spectrum portfolio.
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It covers Globalstar’s existing mobile satellite services (MSS) spectrum licenses, as well as its non-geostationary orbit (MGSO) and direct-to-device (D2D) capable satellites.
The Apple piece is equally important, if not more so.
With the acquisition, Amazon will assume its current agreement with Apple, powering Emergency SOS on iPhone 14 or later and Apple Watch Ultra 3, the press release shared.
Additionally, it will enter into an expanded agreement, under which Amazon Leo will offer satellite services for Apple devices in the future.
This gives Amazon a real use case with a top-tier partner, paving the way for other companies of similar scale to follow suit.
The positive aspects are simple.
Amazon buys a shortcut by acquiring scarce spectrum, an operational low-Earth orbit network and live D2D capability, along with other infrastructure that will power Leo’s launch of its mobile service by 2028.
Amazon can expand its reach beyond traditional wireless coverage, opening the door to more voice, text and data services.
Project Leo aligns with Amazon’s broader AWS strategy, effectively de-risking spectrum rights, supercharging plans, and improving constellation returns.
The Wall Street consensus on Amazon stock remains bullish, with analysts assigning an average price target of $281.18, implying a 12.22% upside from current levels.
The wider range suggests both optimism and caution, with a target high of $360 and low of $175.
Additionally, Amazon stock trades at 32.4 times forward earnings, about 100% above the sector median, according to Seeking Alpha. Historically, valuations this high are not new, and compared to its five-year average, the stock is trading at a discount of 34%.
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This story was originally published by TheStreet on April 19, 2026, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.
