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Just For You
Amazon: Could Globalstar Be the Missing Spark the Stock Needs?Submitted 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.
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Tech giant Amazon.com Inc (NASDAQ: AMZN) has been one of the more frustrating large-cap stocks to own over the past year. Shares are trading around $220 — roughly the same level as in late 2024 — meaning the stock has effectively gone nowhere while the S&P 500 has risen more than 10%. That lack of momentum stems from several factors, notably concerns about rising capital expenditures tied to Amazon’s artificial intelligence (AI) ambitions.
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Against that backdrop, reports that Amazon is in talks to acquire satellite communications company Globalstar Inc (NASDAQ: GSAT) for about $9 billion have grabbed attention. After months of stagnation, the stock is crying out for a catalyst, and this could be it. The question is whether this represents a genuine leap forward or simply another expensive bet that will take 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, there’s no getting around that Amazon needs a new narrative. Its core businesses remain attractive and analysts are largely bullish. Still, heavy AI-related spending with no immediate payoff has left investors hesitant to push shares meaningfully higher. An acquisition of Globalstar would 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 GlobalstarAt first glance, a satellite communications acquisition might seem like a stretch. In reality, it could fit neatly into Amazon’s longer-term strategy. For one, there’s the competitive angle. Amazon’s Leo project (previously called Project Kuiper) is its answer to SpaceX’s Starlink, but it remains 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 planned IPO generating excitement, investor appetite for space and connectivity infrastructure is high. By moving more aggressively into this space, Amazon would position itself in 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 closes, the implications for the stock could be significant. Today, Amazon is largely valued through the lens of its existing businesses, with a particular focus on AWS growth and the potential payoff from AI investments. That has produced 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 gain confidence in its long-term positioning, that could be a meaningful tailwind for the stock. The Risk Would Be SubstantialThe strategic appeal is offset by material 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 hard to justify. Execution risk is another concern. Integrating a satellite communications business into Amazon’s operations would be complex, and scaling the capability in a meaningful way is not guaranteed. The market’s initial reaction was telling: Amazon’s shares fell after reports of the deal. Given how they sold off following last quarter’s surprise increase in capital expenditure guidance, fresh skepticism around a potential $9 billion acquisition is unsurprising. What Happens NextIf Amazon moves forward and provides a clear strategic roadmap for how Globalstar fits into its ecosystem, sentiment could swing positive. As long as investors are given enough detail to be confident in the eventual payoff, there’s reason to think the stock would trend higher. After an extended period of sideways trading, the stock appears to have been waiting for a meaningful catalyst. 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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