Amazon's Dual Ascent: Cloud Growth and Satellite Ambitions Converge Ahead of Earnings

Amazon stock nears 52-week high ahead of Q1 earnings. Investor focus splits between AWS cloud growth and the $11.7B Globalstar satellite acquisition for Project Kuiper.

With its stock climbing over 16% in the past month, Amazon is approaching a critical test. The company is set to report quarterly earnings on April 29, and investor focus is split between its booming cloud business and a bold new strategic acquisition in space.

The share price currently stands at 212.75 euros, just 3.5% shy of its 52-week high of 220.55 euros. This rally has pushed the stock well above its 200-day moving average of around 194 euros, signaling strong technical momentum. Year-to-date, the gain exceeds ten percent.

A Strategic Bet on the Final Frontier

A significant driver of recent investor enthusiasm is Amazon's planned $11.7 billion acquisition of satellite operator Globalstar. The deal, expected to close in 2027 pending FCC approval, is designed to accelerate Amazon's own satellite network, known as Project Kuiper. The strategic goal is clear: to establish a direct competitor to SpaceX's Starlink, which already boasts a constellation of over 10,000 satellites.

Amazon aims to offer direct satellite-to-smartphone connectivity starting in 2028. The transaction includes a guarantee to maintain Apple's existing 20% stake in Globalstar and its partnership, ensuring the continuity of satellite-based emergency services on Apple devices. The purchase price is subject to adjustment, potentially decreasing by up to $110 million if Globalstar misses certain technical milestones. For shareholders, the deal presents a choice between a cash payout and Amazon stock, with the cash component capped at 40%.

The Cloud Engine: AWS and AI Demand

While long-term plans capture imagination, near-term performance hinges on Amazon Web Services (AWS). The cloud division is expected to be the star of the upcoming earnings report. Analysts at Truist Securities recently raised their price target to $285, forecasting AWS revenue growth of 25% for the first quarter of 2026. TD Cowen is even more bullish, maintaining a $300 target and praising Amazon's dual expansion into cloud services and satellite communications.

This optimism is fueled by relentless corporate demand for AI infrastructure, a trend pushing more workloads to hyperscalers like Amazon. The consensus analyst price target sits around $285, implying roughly 14% upside from current levels.

The April 29 Reckoning

All eyes are now on the quarterly results. Wall Street expects earnings per share of $1.63, a 2.5% year-over-year increase, on revenue of approximately $177 billion, which would represent growth of about 14%. The performance of AWS will be paramount. If it delivers the anticipated strong growth, the stock has a realistic shot at surpassing its all-time high. A miss, however, could shift attention to chart support near the 50-day line at 184 euros and pressure the ambitious price targets.

The earnings call will also be scrutinized for details on how the massive Globalstar acquisition will impact capital expenditures. The report will determine whether Amazon's twin engines of cloud and connectivity can sustain its record-breaking momentum.