Technology giant Amazon (AMZN) has delayed the launch of its first Kuiper internet satellites due to poor weather conditions.
A rocket carrying 27 satellites was set to takeoff into Earth’s orbit from Cape Canaveral, Florida but was shutdown due to heavy cloud cover and strong winds. The canceled launch puts a damper on Amazon’s ambitions to build a constellation of satellites in low Earth orbit that can provide wireless internet service.
Amazon has long had ambitions to sell high-speed internet service to consumers, corporations and governments. Commercial service is expected to come online this year. Amazon is setting itself up to compete directly with Elon Musk’s SpaceX, the dominant player in the market with 8,000 internet satellites already in orbit above the Earth.
New Venture
Satellite-based internet service is an entirely new venture for Amazon, which is racing to meet a deadline set by the Federal Communications Commission (FCC) that requires the company to have half of its 1,618 internet satellites in place by July 2026.
Once it completes the first satellite launch, Amazon expects to ramp up its production, processing, and deployment rates. It’s not immediately clear when the first satellite launch has been rescheduled for. The stock of Amazon has declined 16% so far this year.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 46 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $263.81 implies 43.84% upside from current levels.
