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More Reading from MarketBeat Media
Amazon: Could Globalstar Be the Missing Spark the Stock Needs?Author: Sam Quirke. Date Posted: 4/9/2026. 
Key Points
- Despite having plenty of tailwinds, Amazon shares have gone nowhere for almost 18 months, meaning this potential Globalstar deal could be the spark that’s been missing.
- The acquisition would accelerate Amazon’s satellite ambitions and expand its ecosystem across AWS, connectivity, and beyond.
- However, the initial market reaction suggests investors are skeptical, and, given the $9B price tag, they have every right to be.
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Tech giant Amazon.com Inc (NASDAQ: AMZN) has been one of the more frustrating large-cap stocks to own over the past year. Shares are trading around $220, about the same level as in late 2024, meaning the stock has essentially gone nowhere while the S&P 500 has gained more than 10%. That lack of momentum has been driven by several factors, most notably investor concerns about rising capital expenditure tied to the company’s artificial intelligence (AI) ambitions. Against that backdrop, recent reports that Amazon is in talks to acquire satellite communications company Globalstar Inc (NASDAQ: GSAT) for roughly $9 billion have grabbed attention.
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After months of stagnation, the stock seems to be waiting for a catalyst, and this deal could be it. The question is whether the move would be a genuine strategic leap or another expensive bet that takes time to pay off. Let’s take a closer look. Amazon Needs a Catalyst, and This Could Be ItGiven Amazon’s performance in 2025 and so far in 2026, there’s no escaping that the company needs a fresh narrative. Its core businesses remain attractive, and analysts are generally bullish. Still, heavy AI-related spending with no immediate payoff has left many investors hesitant to push the shares higher. An acquisition of Globalstar would be a clear signal that Amazon is willing to take bold steps to accelerate its next phase of growth. In markets like this, narrative matters almost as much as fundamentals. A deal of this scale and ambition could reshape investor expectations, even before financial benefits appear. Why Amazon Would Want GlobalstarOn the surface, a satellite communications acquisition might seem like a stretch, but it could fit neatly into Amazon’s longer-term strategy. For starters, there’s the competitive angle. Amazon’s LEO project (Project Kuiper) is its answer to SpaceX’s Starlink, but it lags significantly in deployment and scale. Acquiring Globalstar, with its existing satellites and infrastructure, would give Amazon an immediate shortcut to narrowing that gap. Timing also matters. With SpaceX’s potential IPO generating renewed interest, investor appetite for space and connectivity infrastructure is heating up. By moving more aggressively into this space, Amazon could reframe its story and benefit from a broader re-rating of companies operating at the intersection of technology and space. What It Could Mean for the StockIf investors buy into that vision and the deal closes, the implications for the stock could be meaningful. Today, Amazon is largely being valued through the lens of its existing businesses—especially AWS growth and the potential payoff from AI investments—which has created a narrative centered on spending, margins, and near-term execution risk. A deal like this would introduce a different narrative, shifting focus toward long-term satellite infrastructure and Amazon’s ability to compete in new domains. Given Amazon’s history of expanding its multiple when investors gain confidence in its long-term positioning, that could provide a significant tailwind for the stock. The Risks Would Be SubstantialStrategic appeal is offset by obvious risks. The most immediate is the price tag: $9 billion is a significant premium for Globalstar, a company with annual revenue under $300 million. On traditional metrics alone, that valuation is hard to justify. Execution risk is another major concern. Integrating a satellite communications business into Amazon’s operations would be complex, and scaling that capability into a meaningful revenue stream is far from guaranteed. The market’s initial reaction was telling: Amazon’s shares slipped after reports of the potential deal. Given how the stock reacted to last quarter’s surprise increase in capital expenditure guidance, fresh skepticism around a $9 billion acquisition isn’t surprising. What Happens NextIf Amazon proceeds and lays out a clear strategic roadmap showing how Globalstar fits into its broader ecosystem, sentiment could turn positive. Investors will want enough detail to believe in the eventual payoff; without that, conviction will remain limited. After an extended period of sideways trading, the stock appears primed for a catalyst. The opportunity is real, but ultimate success depends on Amazon’s ability to sell the vision and then deliver results. |
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