Investors Are Undervaluing Amazon Stock After the SpaceX IPO. Its Space Business Is Definitely Worth More Than $0.

SpaceX (SPCX) went public in June, and Amazon (AMZN) suddenly has a listed rival in space. At first glance, the two companies do not look comparable in the niche. SpaceX’s Starlink grew 50% last year with revenue of $11.4 billion. SpaceX has 9,600 satellites in orbit against Amazon Leo’s 330 satellites. Stifel values Starlink alone at $1.25 trillion, slightly more than half of SpaceX’s enterprise value of $2.45 trillion.

But Amazon is not trying to win on satellite count. In April, the company agreed to acquire Globalstar (GSAT) for around $11.6 billion to expand its Leo satellite network. It recently introduced Leo Ultra, which is the fastest satellite-internet antenna in history according to management. Another key development is the company’s recent agreement with Apple (AAPL); Amazon Leo will now power satellite features on the iPhone and Apple Watch. Earlier this year, Amazon also signed Delta (DAL) and JetBlue (JBLU) to put Leo internet on hundreds of planes from 2028 onwards.