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Amazon just got another vote of confidence
Citizens isn’t exactly subtle here: it reiterated a Market Outperform rating on Amazon and stuck with a $315 price target, which implies plenty of runway from where the stock was trading around $249. In other words, the Street still thinks Amazon’s story is more “slow-burn compounding machine” than “mature giant running out of tricks.”
The Globalstar twist
The catalyst in the background is Amazon’s reported $11.7 billion Globalstar deal. Citizens analyst Andrew Boone thinks that gives Amazon a sharper shot at the direct-to-device satellite market, plus access to the kind of low-frequency spectrum that can make a network actually work instead of just looking cool in a slide deck.
That matters because it nudges Amazon a little closer to a future where connectivity could become another subscription layer — maybe even something bundled into Prime someday. Not tomorrow, sure. But the point is that Amazon keeps buying itself optionality, which is basically corporate catnip.
AWS is still the main event
The satellite angle is flashy, but Citizens says the real near-term engine is still AWS, especially with enterprise AI demand chewing through compute capacity like a teenager in front of a snack table. The analyst’s take: Amazon’s heavy capex may look huge, but if AI demand keeps expanding, that spending could turn into more revenue instead of a very expensive science project.
Big picture: Amazon is trying to be two things at once — the cloud king and the future telecom wildcard. If both stories keep working, that $315 target starts sounding less like a moonshot and more like a very patient bet.