Jeff Bezos’ space company, Blue Origin, said on Wednesday that it plans to launch a massive satellite network called TeraWave, which will be made up of 5,408 satellites. The goal is to compete directly with satellite internet providers like Elon Musk‘s aerospace firm SpaceX and tech giant Amazon (AMZN). However, TeraWave is mainly designed for enterprise customers, data centers, and government users, rather than individual consumers.
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In addition, Blue Origin said that the network could deliver speeds of up to 6 terabits per second using satellites in low and medium-Earth orbit. Still, Bezos is entering a market that is already highly competitive. Indeed, SpaceX’s Starlink currently dominates the industry, with more than 9,000 satellites in orbit and around 9 million users. Meanwhile, Amazon has been aggressively building its own satellite internet network, which it recently rebranded as Leo from Project Kuiper.
In fact, Amazon has already launched 180 satellites since last April and plans to deploy a total of 3,236 satellites, with some future launches expected to be handled by Blue Origin itself. Interestingly, though, Bezos, who founded both Blue Origin and Amazon, has said he believes that Blue Origin could eventually surpass Amazon in size, which currently has a market cap of $2.55 trillion. Nevertheless, he has admitted that building the business will take time.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $294.45 per share implies 27.5% upside potential.
