Amazon (NASDAQ:AMZN) has announced a delay in the launch of its first batch of Project Kuiper satellites. The company now plans to ship its first completed production satellites this summer. Also, it aims to launch the first mission in the fourth quarter, originally scheduled for the first half of the year.
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The delay reflects the difficulties of making advanced communication satellites. Amazon’s focus on high standards for performance, reliability, and safety might also play a role.
Amazon to Compete with Musk’s Starlink
Project Kuiper is Amazon’s initiative to offer satellite internet services. It will position AMZN as a competitor to Starlink, the satellite internet division of Elon Musk’s space company, SpaceX.
Additionally, Amazon will face competition from telecom giants AT&T (NYSE:T) and AST SpaceMobile (NASDAQ:ASTS), which recently teamed up to provide space-based broadband services directly to mobile phones.
Future Plans and Production Goals
Despite the delay, Amazon aims to increase satellite production and deployment rates in 2025. Further, the company remains on track to begin offering services to customers next year.
It’s worth noting that Amazon plans to build and ship more than 3,000 satellites in the upcoming years to deploy its initial satellite constellation. This major production and launch effort is essential for Amazon to achieve its goal of providing global satellite internet coverage.
Amazon Stock Trending Higher
While Amazon’s Kuiper spacecraft launch has been delayed, the company is doing well in its retail and cloud businesses.
Also, the company is cutting costs, investing in AI technology, and improving delivery speed. Thanks to these positives, Amazon stock has been trending higher, crafting new all-time highs. Moreover, AMZN’s market cap exceeded $2 trillion.
Are Amazon Shares a Good Buy?
While Amazon shares have gained over 53% in one year, Wall Street maintains a bullish outlook. With 42 unanimous Buy recommendations, AMZN stock has a Strong Buy consensus rating. The analysts’ AMZN stock price target is $221.55, implying 11.98% upside potential from current levels.
