Tech giant Amazon.com Inc (NASDAQ: AMZN) has been one of the more frustrating large-cap stocks to own over the past year or so. Shares are currently trading around $220, the same level they were at in late 2024, meaning the stock has effectively gone nowhere during a period where the S&P 500 index has added more than 10%.
That lack of momentum has been driven by a combination of factors, not least those concerns around the company’s rising capital expenditure tied to its artificial intelligence (AI) ambitions.
Against that backdrop, recent reports that Amazon is in talks to acquire satellite communications company Globalstar Inc (NASDAQ: GSAT) for around $9 billion have grabbed attention.
After months of stagnation, the stock is crying out for a spark, and this could be it.
The question is whether this represents a genuine leap forward or simply another expensive bet that takes time to pay off. Let’s take a closer look.
Amazon Needs a Catalyst, and This Could Be It
Given how the stock performed in 2025 and how it’s done so far in 2026, there’s no getting around the fact that Amazon needs a new narrative. Its core businesses remain highly attractive, and analysts are almost unanimously bullish. Still, the combination of heavy AI-related spending that lacks an immediate payoff has left investors hesitant to push shares meaningfully higher.
At first glance, an acquisition of Globalstar would represent a clear signal that Amazon is willing to take bold steps to accelerate its next phase of growth. In markets like this, narrative matters almost as much as fundamentals. A deal of this scale and ambition could shift how investors think about Amazon, even before any financial benefits materialize.
Why Amazon Would Want Globalstar
In terms of what they could be, it’s fair to think that, on the surface at least, a satellite communications acquisition might seem like a stretch. In reality, it could fit neatly into Amazon’s longer-term strategy.
For starters, there’s the competitive angle. Amazon’s Leo project (previously called Project Kuiper) has been its answer to SpaceX’s satellite internet constellation Starlink, but it remains significantly behind in terms of deployment and scale. Acquiring Globalstar, with its existing satellites and infrastructure, would provide an immediate shortcut to closing the gap.
There’s also the timing of it all. With SpaceX’s plans to IPO this year generating significant excitement, investor appetite for space and connectivity infrastructure is reaching a fever pitch. By moving into this space more aggressively, Amazon would position itself within that same conversation and benefit from a broader re-rating of companies operating at the intersection of technology and space.
What It Could Mean for the Stock
If investors buy into that vision, and the deal goes through, the implications for the stock could be substantial. Right now, Amazon is largely being valued through the lens of its existing businesses, with a particular focus on AWS growth and the potential payoff from its AI investments. That has created a narrative centered around spending, margins, and near-term execution risk.
A deal like this introduces a different angle and shifts the conversation toward long-term satellite infrastructure and Amazon’s ability to compete in entirely new domains. Given Amazon’s track record of expanding its multiple whenever investors become more confident in its long-term positioning, that could act as a serious tailwind to the stock.
The Risk Would Be Substantial
At the same time, however, the strategic appeal is offset by difficult-to-ignore risks. The most obvious is the price tag. $9 billion represents a significant premium for Globalstar, a company with annual revenue of less than $300 million. On traditional metrics alone, that would be a hard deal to justify.
Execution risk is another major factor. Integrating a satellite communications business into Amazon’s existing operations would be far from straightforward, and the path to scaling that capability in a meaningful way isn’t exactly guaranteed.
In this regard, the market’s initial reaction was telling, with Amazon's shares moving lower following reports of the deal. Given how they sold off following last quarter’s surprise increase in capital expenditure guidance, this fresh bout of skepticism around a potential $9 billion deal isn’t all that surprising.
What Happens Next
In terms of what to expect from here, if Amazon moves forward with the acquisition and provides a clear strategic roadmap for how Globalstar fits into its broader ecosystem, sentiment could swing to the upside. As long as investors are given enough details to be bullish on the eventual payoff, there’s every reason to think the stock would trend higher.
After an extended period of sideways trading, there’s a sense that the stock has been waiting for something like this to come along. For now, the opportunity is clear, but conviction will ultimately depend on Amazon’s ability to sell the vision and then turn it into results.
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The article "Amazon: Could Globalstar Be the Missing Spark the Stock Needs?" first appeared on MarketBeat.
