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Investing.com - BofA Securities maintained its Buy rating and $248.00 price target on Amazon.com (NASDAQ:AMZN), currently trading at $222.54 with a market capitalization of $2.36 trillion, highlighting the potential of the company’s Kuiper satellite project. According to InvestingPro data, Amazon maintains a "GREAT" financial health score, supporting its ambitious expansion plans.
The research firm noted that approximately 2.6 billion people globally lack broadband internet access, creating a significant market opportunity. According to BCG data cited in the report, the global satellite communications service market could reach $40 billion in revenue potential by 2030. Amazon appears well-positioned to pursue this opportunity, with its robust revenue of $650.31 billion in the last twelve months.
BofA projects that Amazon could capture a 30% consumer share in this market, potentially generating $7.1 billion in revenue by 2032 from its Kuiper satellite initiative. The firm noted that competitor Starlink already has 6 million subscribers in the satellite internet space.
The analysis also points to expected synergies between the Kuiper project and Amazon’s existing logistics network. BofA anticipates additional revenue streams from AWS enterprise and government customers utilizing the satellite services.
BofA Securities described the satellite internet opportunity as "compelling" with "potentially strong long-term margins given high start-up costs," factors supporting its continued Buy recommendation on Amazon shares. For deeper insights into Amazon’s valuation and growth potential, InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report.
In other recent news, Amazon.com has seen several significant developments. Analysts at Citizens JMP raised Amazon’s stock price target to $285, citing the company’s strong logistics network, extensive reach, and potential growth in Amazon Web Services (AWS) driven by artificial intelligence. TD Cowen also increased its price target for Amazon to $250, expecting the company to surpass consensus estimates for future revenue and operating income, buoyed by growth in AWS, advertising, and e-commerce segments. Meanwhile, Amazon Web Services introduced custom cooling technology for Nvidia (NASDAQ:NVDA)’s AI chips, enhancing its infrastructure to support advanced AI workloads. Additionally, Amazon’s pricing policy is under investigation by the Canadian Competition Bureau, focusing on potential dominance abuse in its marketplace. The investigation aims to assess whether Amazon’s Marketplace Fair Pricing Policy unfairly impacts sellers and price competition. The Federal Court has ordered Amazon to provide relevant records, though no conclusions of wrongdoing have been made. These developments reflect ongoing strategic advancements and regulatory scrutiny within Amazon’s operations.
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