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Further Reading from MarketBeat
Amazon: Could Globalstar Be the Missing Spark the Stock Needs?Authored by Sam Quirke. Posted: 4/9/2026. 
Key Points
- Despite having plenty of tailwinds, Amazon shares have gone nowhere for almost 18 months, meaning this potential Globalstar deal could be the spark that’s been missing.
- The acquisition would accelerate Amazon’s satellite ambitions and expand its ecosystem across AWS, connectivity, and beyond.
- However, the initial market reaction suggests investors are skeptical, and, given the $9B price tag, they have every right to be.
- Special Report: Elon Musk already made me a “wealthy man”
Tech giant Amazon.com Inc (NASDAQ: AMZN) has been one of the more frustrating large-cap stocks to own over the past year. Shares trade around $220 — the same level as in late 2024 — meaning the stock has effectively gone nowhere while the S&P 500 has gained more than 10%. That lack of momentum stems from several factors, notably investor concern about rising capital expenditure tied to the company’s artificial intelligence (AI) ambitions. Against that backdrop, reports that Amazon is in talks to acquire satellite communications company Globalstar Inc (NASDAQ: GSAT) for roughly $9 billion have drawn attention.
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After months of stagnation, the stock is crying out for a spark, and this could be it. The question is whether the move would be a genuine leap forward or another expensive bet that takes time to pay off. Let’s take a closer look. Amazon Needs a Catalyst, and This Could Be ItGiven how the stock performed in 2025 and so far in 2026, Amazon clearly needs a new narrative. Its core businesses remain attractive and analysts are broadly bullish, but heavy AI-related spending without an immediate payoff has left investors hesitant to push shares much higher. At first glance, acquiring Globalstar would be a clear signal that Amazon is willing to take bold steps to accelerate its next phase of growth. In markets like this, narrative matters almost as much as fundamentals. A deal of this scale and ambition could change how investors view Amazon — even before any financial benefits materialize. Why Amazon Would Want GlobalstarOn the surface, a satellite communications acquisition might seem like a stretch, but it could fit neatly into Amazon’s longer-term strategy. For starters, there’s the competitive angle. Amazon’s Leo project (previously called Project Kuiper) is its answer to SpaceX’s satellite internet constellation Starlink, but it remains significantly behind in deployment and scale. Acquiring Globalstar, with its existing satellites and infrastructure, would provide an immediate shortcut to closing that gap. Timing also matters. With SpaceX’s plans to IPO this year generating excitement, investor appetite for space and connectivity infrastructure is peaking. By moving more aggressively into this space, Amazon would insert itself into that conversation and could benefit from a broader re-rating of companies operating at the intersection of technology and space. What It Could Mean for the StockIf investors buy into that vision and the deal goes through, the implications for the stock could be substantial. Today, Amazon is largely valued through the lens of its existing businesses, with a focus on AWS growth and the potential payoff from AI investments. That has created a narrative centered on spending, margins, and near-term execution risk. A deal like this would introduce a different angle, shifting the conversation toward long-term satellite infrastructure and Amazon’s ability to compete in new domains. Given Amazon’s track record of expanding its multiple when investors grow more confident in its long-term positioning, that could provide a meaningful tailwind for the stock. The Risk Would Be SubstantialThat strategic appeal is offset by clear risks. The most obvious is the price tag: $9 billion is a significant premium for Globalstar, a company with annual revenue under $300 million. On traditional metrics alone, that would be difficult to justify. Execution risk is another major concern. Integrating a satellite communications business into Amazon’s operations would be complex, and scaling that capability in a meaningful way is not guaranteed. The market’s initial reaction was telling: Amazon's shares moved lower after reports of the deal. Given how the stock sold off following last quarter’s surprise increase in capital expenditure guidance, this fresh bout of skepticism around a potential $9 billion acquisition isn’t surprising. What Happens NextIf Amazon proceeds with the acquisition and lays out a clear strategic roadmap for how Globalstar fits into its broader ecosystem, sentiment could swing positive. As long as investors are given enough detail to be confident in the eventual payoff, there’s every reason to think the stock would trend higher. After an extended period of sideways trading, the stock appears to have been waiting for a catalyst like this. The opportunity is clear — but conviction will ultimately depend on Amazon’s ability to sell the vision and then deliver results. |
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