Nauman Khan

Wed, Jun 25, 2025, 8:51 AM4 min read

Satellite internet plays have drawn investor interest as demand for global connectivity grows. While Elon Musk’s Starlink has taken the early lead with thousands of satellites already in orbit, Amazon (AMZN) is steadily building momentum with its own Project Kuiper.

On June 23, Amazon launched its second batch of 27 Kuiper satellites aboard a United Launch Alliance Atlas V rocket, bringing its constellation to 54 satellites in low Earth orbit. With plans to deploy over 3,200 satellites and a looming FCC deadline to launch half by mid-2026, Amazon is accelerating efforts to compete head-on with Starlink.

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For investors weighing AMZN stock, this latest milestone underscores both promise and risk. Project Kuiper could unlock new revenue streams over time, but it demands vast capital and execution precision.

Based in Seattle, Amazon is a global e-commerce and cloud computing leader. Beyond core operations, it invests heavily in AI and robotics, powering AWS machine-learning services and warehouse automation. Subsidiaries and startups like Zoox highlight Amazon’s aggressive push into autonomous and advanced technologies. Backed by vast R&D resources, the company drives innovation across cloud, logistics, and emerging tech, keeping itself at the forefront of digital transformation.

With a market capitalization of nearly $2.3 trillion, Amazon has seen its shares slide roughly 3% year-to-date.

From a valuation perspective, Amazon trades at 34 times forward earnings and 3.5 times forward sales, higher than the sector medians of 16.6 times and 0.85 times, respectively, indicating that investors are pricing in its superior growth prospects and market dominance.

Amazon is expanding its reach into satellite technology, following the successful launch of more Kuiper satellites, deployed by its own robotic systems, to enhance global connectivity. The company leverages artificial intelligence through AWS to process vast amounts of data from both its warehouses and satellite infrastructure. It also designs custom AI chips to accelerate machine learning tasks across its ecosystem, benefiting both internal operations and external partners.