Amazon secures satellite spectrum for iPhone connectivity and raises AWS forecasts after $100 billion AI partnerships.
Amazon will acquire Apple’s 20% stake in Globalstar as part of an $11.6 billion deal to expand its satellite communications infrastructure. The investment targets the 1.6/2.4 GHz spectrum used for iPhone emergency services in areas without cellular coverage, strengthening Amazon’s position in the sector.
Truist increased its Amazon price target to $320 from $310, citing higher long-term AWS revenue projections tied to $100 billion partnerships with Anthropic and OpenAI. Analysts suggest consensus estimates may underestimate AI-driven growth and future capital expenditures.
The transaction and revised forecasts highlight Amazon’s push into AI and satellite markets, with potential revenue upside from expanding backlog opportunities.