Amazon’s $11.6 Billion Satellite Deal and Meta’s Cloud Win Propel Stock to Fresh Highs

Amazon’s shares stormed to a new 52-week high on Friday, closing at €225.40 in European trading and $263.99 on Wall Street, as a pair of blockbuster developments in space and cloud computing electrified investors ahead of the company’s first-quarter earnings release on April 29.

The stock surged 3.42% in a single session, extending its year-to-date gain to roughly 17%. The catalyst was twofold: a $11.57 billion acquisition of satellite operator Globalstar and a major cloud computing win with Meta Platforms.

A Satellite Bet with Apple’s Blessing

Amazon is buying Globalstar for $90 per share in a mix of cash and stock, securing valuable wireless spectrum and an existing partnership with Apple. The deal bolsters Amazon’s “Project Kuiper” satellite network — now rebranded as “Amazon Leo” — which has already consumed over $100 billion in investment.

Goldman Sachs characterized the acquisition as a direct assault on competitors, noting it represents a massive expansion of Amazon’s infrastructure capabilities. The satellite network is designed to provide global broadband coverage, positioning Amazon to challenge SpaceX’s Starlink and other players in the burgeoning space-based internet market.

Meta’s Chip Endorsement

Separately, Meta has chosen Amazon Web Services to power its next generation of artificial intelligence workloads, specifically using Amazon’s custom Graviton processors. The deal makes Meta one of the largest customers for Amazon’s chips, sending a powerful signal about demand strength in the cloud business.

Analysts were quick to upgrade their outlooks. UBS raised its price target to $304, with analyst Stephen Ju projecting AWS growth of 38% in 2026 — well above the consensus estimate of 26%. BMO Capital lifted its target to $315, citing an acceleration in AWS growth despite macroeconomic uncertainty. TD Cowen also reaffirmed its positive stance. The median analyst target now stands at $282, according to LSEG data, implying roughly 11% upside from current levels.

BMO’s team pointed to a “growth reacceleration” at AWS that they believe is underappreciated by the market. The cloud division has been a standout performer, with CEO Andy Jassy already disclosing that AI services within AWS have reached an annualized revenue run rate of $15 billion.

Should investors sell immediately? Or is it worth buying Amazon?

The $200 Billion Question

All this expansion comes at a staggering cost. Amazon has earmarked roughly $200 billion in capital expenditures for 2026, with the bulk flowing into AI data centers and the satellite network. When that figure was first disclosed in February, the market initially sold off the stock on concerns about near-term free cash flow compression.

The capex burden is compounded by US import tariffs on Chinese goods. Amazon is actively negotiating with suppliers over price adjustments, while the elimination of the de-minimis rule is adding costs to its third-party marketplace.

Goldman Sachs, while maintaining a buy rating, trimmed its price target slightly to $275, with analyst Eric Sheridan flagging rising energy prices and elevated investment costs as headwinds. Stifel also pointed to geopolitical risks that could weigh on the stock.

What to Watch on April 29

Amazon will report first-quarter results after the US market close on Tuesday. The company has guided for revenue between $173.5 billion and $178.5 billion, while analysts polled by LSEG expect around $188 billion — representing roughly 14% year-over-year growth. Earnings per share are forecast at approximately $1.63.

For AWS specifically, the consensus calls for $36.8 billion in revenue with a margin of 35.7%. The critical metric will be the growth rate of the cloud business. If AWS maintains or exceeds 20% growth, the valuation thesis around the division remains intact. A miss below that threshold could reignite debates about whether Amazon’s massive investment spree is generating adequate returns.

Amazon itself provided an operating income forecast of $16.5 billion to $21.5 billion for the quarter, which came in below the then-consensus of $22.2 billion. That low bar means a solid beat is achievable, but a miss — even within the guided range — could trigger a sharp selloff.

Investors will also scrutinize retail margins and any updates on the capex trajectory. The combination of the Globalstar acquisition, the Meta partnership, and the AWS growth narrative has created powerful momentum, but the earnings report will determine whether the rally has further to run.