After a few weather delays, Amazon (AMZN) has managed to launch a total of 102 internet satellites into Earth’s orbit.
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The e-commerce company crossed the 100 mark on Aug. 11 after a SpaceX Falcon 9 rocket carried the company’s latest batch of Kuiper satellites into low-Earth orbit. Four previous launch attempts were interrupted by heavy rainfall.
The Falcon 9 rocket successfully placed 24 Kuiper satellites into space, which can now provide internet connections on Earth. Somewhat ironically, Amazon is relying on Elon Musk’s SpaceX, its main rival in the internet satellite market, for help building its constellation in outer space.
Chasing SpaceX
Privately held SpaceX’s Starlink is currently the dominant provider of low-Earth orbit satellite internet, with a constellation of nearly 8,000 satellites and about five million customers. Amazon is chasing SpaceX and trying to get more of its Kuiper satellites into space to meet a deadline set by the U.S. Federal Communications Commission (FCC).
The FCC requires that Amazon have about 1,600 satellites in low-earth orbit by July 2026, with its full 3,236-satellite constellation launched by mid-2029. Amazon has booked up to 83 satellite launches in coming years, including three more rides aboard SpaceX rockets. Amazon has said that it hopes to begin offering commercial internet service on Earth by the end of 2025.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 43 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $264.21 implies 19.15% upside from current levels.
