Amazon's Dual-Pronged Bet: Billions for Satellites and Bio-AI

Amazon stock soars on two major moves: acquiring satellite operator Globalstar for space infrastructure and launching an AI platform to accelerate drug discovery, highlighting its push into next-gen tech.

Amazon's stock is riding high, trading at 210.40 euros and up roughly 37 percent over the past twelve months. The momentum is fueled by two distinct but strategically aligned moves announced this week: a confirmed $11.57 billion acquisition of satellite operator Globalstar and the launch of a new AI platform for drug discovery. Together, they underscore the tech giant's aggressive and costly push to dominate next-generation infrastructure.

The market responded positively, with shares rising as much as 5 percent intraday and gaining about 11 percent over the last seven trading days. The stock now sits just 4.6 percent below its 52-week high of 220.55 euros.

Securing the Skies and a Key Partner

In a decisive move to accelerate its space ambitions, Amazon is acquiring Globalstar for $90 per share. The deal, expected to close in 2027, grants Amazon immediate control over 24 active satellites, a global network of ground stations, and crucially, valuable L-Band and S-Band spectrum licenses. This spectrum is the digital foundation for sending data directly to standard smartphones without specialized antennas, a capability central to Amazon's "Project Leo" satellite initiative.

The acquisition also locks in a prominent partnership. Apple, which already holds a 20 percent stake in Globalstar and uses its network for SOS features on iPhone and Apple Watch, will see Amazon's low-earth-orbit subsidiary become the backbone for these services going forward. With major shareholder Thermo Funding already on board, a protracted shareholder vote is avoided.

This purchase addresses significant time pressure. Amazon has fallen behind its own buildout schedule, requesting an extension from the US FCC in January for launching 1,600 satellites by July 2026. Meanwhile, SpaceX's Starlink dominates with over 10,000 satellites and nine million users. The Globalstar buy bridges a critical portfolio gap until Amazon's own next-generation direct-to-device system is operational from 2028 onward.

From Orbit to the Lab: AI Targets Biotech

Simultaneously, Amazon Web Services (AWS) launched "Amazon Bio Discovery," a specialized AI platform designed to accelerate early-stage drug discovery. The no-code interface allows pharmaceutical researchers without programming skills to generate and evaluate biological molecules. The platform employs a "Lab-in-the-Loop" approach, where experimental results from physical labs feed directly back into the AI model to refine future predictions.

The potential speed is dramatic. In a collaboration with the Memorial Sloan Kettering Cancer Center, researchers generated approximately 300,000 antibody molecules and filtered them down to 100,000 lab candidates—a process that could compress work that traditionally took a year into a few weeks. AWS has a direct channel into the industry, as 19 of the world's 20 largest pharmaceutical companies are already AWS customers. Early adopters of the new platform include Bayer, the Broad Institute, and Voyager Therapeutics.

The $200 Billion Framework

Both initiatives are framed by staggering capital expenditure. Amazon has outlined plans for roughly $200 billion in investments for 2026, primarily directed toward AI infrastructure, its proprietary Trainium line of chips, and satellite network build-out. CEO Andy Jassy noted that AWS AI services are already generating an annualized revenue run rate exceeding $15 billion.

This massive capital commitment makes some analysts nervous, even as the majority maintain faith in the long-term strategy. Cantor Fitzgerald recently raised its price target to $260, citing growing commercial use of AWS's in-house chips. Goldman Sachs trimmed its target slightly to $275 but maintained a Buy rating. Other firms are more bullish: Rosenblatt Securities reaffirmed its Buy recommendation with a $296 target, while Citizens JMP sees $315 as achievable.

Evercore ISI views 2026 and 2027 as the peak of investment intensity but considers Amazon attractively positioned for the long term. All eyes are now on the upcoming first-quarter 2026 results, due April 29. Management has guided for revenue between $173.5 and $178.5 billion. Wall Street's exclusive focus, however, will be the growth rate of AWS. A figure exceeding 20 percent would help justify the enormous spending and support the current valuation, while a weaker number could trigger a sharp reassessment of the stock.