Amazon’s stock (AMZN) is taking flight once more following its landmark partnership that formally designates JetBlue Airways (JBLU) as the inaugural airline customer for its Project Kuiper satellite broadband network. According to the terms of the deal, Amazon’s low Earth orbit satellite network, named “Kuiper,” will deliver more efficient connectivity to JetBlue customers beginning in 2027.
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Once the deal is executed and AMZN’s technology is installed, it’s expected that the move will help deliver faster, free in-flight Wi-Fi for JetBlue customers.
Despite being fully launched just months ago, Amazon’s formal entry into the competitive in-flight connectivity sector was well-received by market participants, driving its stock up by 4.29% immediately following last week’s announcement. By the end of Friday’s trade, AMZN stock was up 3.76% on the week.
Amazon, best known for its e-commerce, has expanded into several markets lately, including technology. Amazon’s Project Kuiper is a lesser-known aspiration that entails a constellation of satellites in “low Earth orbit” (LEO) to provide “high-speed, low-latency broadband on a global scale.”
All in all, my analysis suggests that Project Kuiper has transitioned from a speculative, high-cost R&D project into a commercially validated business line with significant potential, warranting a Bullish outlook.
A New Pillar of Growth
Project Kuiper aligns with Amazon’s broader strategy, which is based on three foundational pillars: logistics (fulfillment centers, sorting hubs, and delivery fleets), cloud computing (AWS), and global connectivity (satellite internet).
A key detail is that Kuiper’s ground network runs entirely on AWS—Amazon’s most profitable unit—leveraging its cloud infrastructure for the compute, storage, and networking needed to link satellites with the internet. With revenues up 12% since last year and operating income 31% higher, Amazon’s performance is not only keeping pace with previous norms, but is accelerating.
In recent market commentary, the online retailer has emphasized its focus on key performance drivers, including price, selection, and convenience, as well as improved delivery speeds and optimized inventory positioning. Despite ongoing uncertainties surrounding tariffs and economic conditions, the online retailer said it remains “cautiously optimistic” about its growth trajectory, buoyed by successful initiatives, including Prime Day, and advancements in its AWS and advertising segments.
With JetBlue selecting Amazon as its technology partner, the initiative aims to provide global broadband to households, schools, businesses, governments, and emergency services in regions underserved by traditional networks. By controlling logistics, cloud, and connectivity—the core infrastructure of modern digital commerce—Amazon reinforces why it commands a valuation north of $2 trillion.
AMZN Bulls Sense a Sky-High Opportunity
Kuiper appears to be sidestepping the fate of Amazon’s past missteps. Its recent partnership with JetBlue offers early commercial validation—likely just the beginning. While the financial impact is negligible against Amazon’s nearly $700 billion revenue run rate, it marks a strategic foothold in a satellite broadband market projected to exceed $20 billion by 2030.
Few players can field satellite constellations at scale, and beyond SpaceX, Amazon stands alone in low-Earth orbit ambitions. Like AWS, Kuiper is designed to be a large, profitable segment once fully deployed. The JetBlue deal also extends a long-standing relationship—Amazon previously partnered with the airline on content (Prime Video) and commerce. Looking ahead, Kuiper could even enhance Prime’s value proposition, with internet service someday bundled to drive new subscriptions.
Costly Battle for the Stars Poses Risk to Bullish Thesis
The bearish countercase can’t be ignored. Amazon’s cash-rich core businesses—online retail and advertising—give it the flexibility to fund new ventures, but not every bet pays off — the Fire phone as one prime example. Building, launching, and maintaining a satellite constellation will demand tens of billions of dollars, weighing heavily on free cash flow and margins for years. If Kuiper fails to scale into a major profit center, the result could be significant destruction of shareholder value.
Importantly, this isn’t a near-term revenue driver. SpaceX’s Starlink already commands a huge lead, with more than 8,000 satellites in orbit and partnerships with major airlines like United and Virgin Atlantic. With Starlink holding a roughly 80-to-1 satellite advantage, the argument that Amazon is entering the race too late carries real weight.
Justifying AMZN’s Premium Valuation
Amazon’s valuation makes more sense when viewed alongside its growth and cash-generation power. The stock trades at a P/E of ~36—more than double the Consumer Discretionary sector median of ~17—but delivers far stronger fundamentals: year-over-year revenue growth of 10.9% versus 2.9% for its peers, and a net income margin of 10.5% versus 4.3%. Given that performance gap, Amazon’s “premium” multiple is easier to justify.
Is Amazon a Buy, Sell, or Hold?
On Wall Street, AMZN earns an almost unanimous Strong Buy consensus rating based on 44 Buy, one Hold, and zero Sell ratings in the past three months. AMZN’s average price target of $264.13 implies an upside potential of 13.7% over the next 12 months.
Project Kuiper Takes Flight as Amazon’s Third Infrastructure Pillar
Amazon’s JetBlue partnership marks a critical de-risking milestone for Project Kuiper—the first tangible proof that the company is executing its plan to build a third core infrastructure pillar. The market took notice: a 4% gain may seem modest, but on a $2.5 trillion company, it represents roughly $100 billion in added value.
Looking ahead, Amazon’s ability to launch satellites at scale and win enterprise and government contracts will be key. Success would extend Amazon’s ecosystem from the ground to low-Earth orbit, laying the foundation for its next major phase of growth.