What Happened?
Shares of cloud computing and online retail behemoth Amazon (NASDAQ: AMZN) jumped 3.6% in the afternoon session after the company announced it agreed to acquire satellite service provider Globalstar.
The acquisition, valued at approximately $11.6 billion, was intended to enable Amazon's low Earth orbit satellite network, Amazon Leo, to add direct-to-device services, extending connectivity beyond traditional cellular networks. In a related development, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch devices, including the Emergency SOS feature.
The news prompted bullish commentary from Citron Research, which stated the deal would help Amazon achieve "World Domination." The stock's rise also occurred as the broader market indexes opened higher amid hopes of de-escalation in the Middle East.
After the initial pop the shares cooled down to $249.68, up 4.2% from previous close.
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What Is The Market Telling Us
Amazon’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 4.5% on the news that CEO Andy Jassy's annual shareholder letter revealed that the company's artificial intelligence (AI) business was performing strongly.
In the letter, Jassy disclosed that AI services at its cloud-computing unit, AWS, reached an annualized revenue of more than $15 billion. He defended the company's large spending on infrastructure as a necessary investment to become a leader in the field. Adding to the positive news, Amazon's pharmacy announced a new partnership with Eli Lilly to provide same-day delivery for its GLP-1 pill.
The stock's rise was also supported by a drop in energy prices, linked to a reported ceasefire between the U.S. and Iran, which lowered Amazon's shipping costs. Several analysts reacted positively, with some raising their price targets, viewing the company's AI spending as a key driver for future revenue.
Amazon is up 10.2% since the beginning of the year, and at $249.68 per share, it is trading close to its 52-week high of $254 from November 2025. Investors who bought $1,000 worth of Amazon’s shares 5 years ago would now be looking at an investment worth $1,498.
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