Amazon acquires Apple’s Globalstar stake in $11.6bn satellite deal
The e-commerce giant secures Apple’s 20% holding in Globalstar, strengthening spectrum access for emergency services, while analysts raise price targets on cloud and artificial intelligence growth.
Amazon announced on 29 May that it will acquire Apple’s 20% stake in Globalstar as part of its broader $11.6 billion acquisition of the satellite communications company. The transaction marks a significant expansion of Amazon’s presence in satellite infrastructure, securing critical spectrum assets that support connectivity services for iPhone users in regions lacking traditional cellular coverage.
In a regulatory filing, Amazon stated that planned investments in constellation expansion and technical enhancements will strengthen the 1.6/2.4 GHz Mobile Satellite Services spectrum. This spectrum is relied upon by millions of users for emergency and connectivity services in areas where standard mobile networks are unavailable, reinforcing the strategic value of the acquisition beyond mere asset accumulation.
Concurrent with the satellite deal, Truist raised its price target on Amazon to $320 from $310, maintaining a Buy rating on the shares. The financial institution increased its long-term Amazon Web Services revenue forecasts for fiscal 2027 and beyond, citing the potential contribution from Amazon’s recently announced $100 billion partnerships with Anthropic and OpenAI.
The analyst at Truist suggested that consensus estimates may be underappreciating both the company’s future capital expenditures and the significant revenue growth that could emerge from its expanding backlog of artificial intelligence-related business opportunities. This revision reflects a growing confidence in the cloud division’s ability to monetise the surge in demand for generative AI infrastructure.
Amazon, founded in 1994 and headquartered in Seattle, reported $213.4 billion in revenue for the fourth quarter of fiscal 2025, representing a 12% year-on-year increase, alongside $25 billion in operating income. The company’s share price rose by 31.9% over the month preceding this reporting period, reflecting strong market sentiment towards its diversified technology and e-commerce operations.
As of the first quarter of 2026, Amazon had 353 hedge fund holders, placing it among the Top 10 Stocks That Members of Congress Own. This institutional ownership highlights the stock’s prominence in regulated investment portfolios, even as the company navigates complex regulatory environments surrounding its expanding footprint in satellite and artificial intelligence markets.
