To The Moon

The Story So Far.

On 7 Apr 2026, I have shared that $Amazon.com(AMZN)$ bidded $9 billion to acquire $Globalstar(GSAT)$ in a bid to fast-track & bolster its satellite-internet ambitions. click here ! for the detailed post.

Also to play catch-up to Starlink (subsidiary of $Space Exploration Technologies Corp(SPCX)$) that is on the verge of a roadshow, commencing on 04 Jun 2026 and culminating with an initial public offer (IPO) on tentative 12 Jun 2026.

After almost 2 months of radio silence, there is finally light at the end of the tunnel to this merger.

AMZN has revealed that it is taking over AAPL’s 20% stake in GSAT as part of its $11.6 billion acquisition of the satellite communications provider. 

The details are outlined in an AMZN’s filing with the Federal Communications Commission (FCC), urging the US regulator to sign off on the acquisition as the e-commerce giant tries to compete with SpaceX in satellite connectivity. 

The Details.

Now comes the details.

Corporate Structure and the AAPL Alliance.

AMZN is creating a subsidiary, “Grapefruit Acquisition Sub II,” to conduct the merger. (see below)

The subsidiary will also acquire AAPL’s 20% equity and voting interests in GSAT, that the iPhone maker secured in 2024 as part of its own $1 billion investment. 

At the time, Apple paid $400 million for 400,000 Class B shares.

Although AAPL is losing its stake, AMZN says it remains committed to supplying satellite services for iPhones and improving them through GSAT, that began powering Cupertino's Emergency SOS feature with the iPhone 14. 

In AMZN’s FCC filing:

• AMZN’s investment in constellation expansion and technical improvements will strengthen the 1.6/2.4 GHz mobile satellite services (MSS) that millions of iPhone users depend upon today for safety in areas without cellular coverage. 

In April 2026, AMZN also mentioned an agreement with AAPL to keep powering satellite services for the iPhone and Apple Watch.

Market Expansion & Starlink Competitive Threat

It also told the FCC it plans on using GSAT to help it serve “smartphones and other mobile devices across multiple carriers and vendors,” not just AAPL.  

AMZN’s filing goes on to highlight the competitive benefits GSAT acquisition will bring to the emerging satellite-to-phone market, where SpaceX’s Starlink Mobile and $AST SpaceMobile, Inc.(ASTS)$ are competing.

The services aim to eliminate cellular dead zones in remote and rural areas by using satellites that act as orbiting cell towers, capable of beaming data to unmodified phones on the ground.  

In AAPL’s case, the satellite connectivity has saved the lives of people facing emergencies.

However, the technology risks becoming outdated as Starlink Mobile adds more robust features, including data for select mobile apps, video calling, and, eventually, 150Mbps speeds through a next-generation network. 

Mitigating Legacy Hardware & Environmental Limitations

In the FCC filing, AMZN also alluded to the limitations of GSAT’s network with plans to drastically upgrade the satellite connectivity - including enabling voice calls.

Current MSS offerings frequently require a clear view of the sky because signal strength is insufficient to penetrate foliage, buildings, or adverse weather.

AMZN said its satellites will provide better coverage, higher capacity, quicker connection times, and improved signal quality in many locations and conditions where today’s services do not reach.

The improvements, together with the enhanced voice capabilities of AMZN’s planned system, will materially expand what satellite connectivity can do for consumers and businesses worldwide.

Next-Gen Infrastructure Integration & Outlook

Prior to the acquisition, GSAT was developing a new 48-satellite constellation, C-3, to upgrade its satellite services for the iPhone.

AMZN is sticking with the C-3 plans, but also wants to take things further by rapidly deploying “a next-generation direct-to-device (D2D) satellite constellation to operate alongside GSAT’s existing satellites and the C-3.

AMZN added, the new Amazon Leo D2D satellites will augment GSAT’s existing & planned services by enabling features that GSAT cannot offer today, including robust voice, text, and data connectivity to mobile phones and IoT devices that comply with 3GPP NTN standards with no additional specialized equipment. 

The filing also notes that AMZN has developed a “specialty” phased-array antenna technology designed specifically for global D2D services operating in the L-, S-, and 1.6/2.4 GHz MSS bands.

What is unclear though is when will the ‘mentioned’ services will arrive or how much they will cost.

Amazon’s Twin Satellite Sprints

In summary, AMZN is planning to execute a high-stakes, dual-track space strategy, effectively running two simultaneous sprint races to challenge established incumbent SpaceX. (see below)

Sprint #1: Mobile Sprint (D2D)

Through GSAT acquisition, AMZN secures immediate infrastructure and critical radio spectrum.

This move positions the company to compete directly in the satellite-to-phone market, enabling standard smartphones to connect seamlessly to low-Earth orbit (LEO) networks for emergency services and remote data coverage.

Sprint 2: Infrastructure Sprint (Home Broadband)

Concurrently, AMZN is accelerating the deployment of Amazon Leo to challenge SpaceX's Starlink.

This initiative targets the fixed-broadband sector, aiming to deliver high-speed, low-latency internet to remote households and enterprise clients.

Unlike the mobile strategy, this track relies on the install a physical satellite dish.

The Market Outlook: Launching a massive satellite constellation while integrating a major corporate acquisition places immense operational pressure on Amazon's capital expenditure. Success requires navigating two vastly different regulatory, technical, and consumer landscapes at the exact same time.

My viewpoints: (mine only)

The latest post on AMZN & GSAT gave me a glimpse into what AMZN is doing in the aerospace horizon.

For a worthy investment, I think it is important to know what else this amazing Mag 7 member is doing all at the same time.

Amazon is positioning itself as a hyper-diversified infrastructure juggernaut.

It is quietly weaving a multi-layered web across cloud, chips, quantum, and aerospace that aims to fortify its position & relevance in the global tech stack.

Cloud Computing: The Reacceleration

Amazon Web Services (AWS) has firmly put to rest any narrative of a permanent growth slowdown.

• In Q1 2026, AWS revenue surged +28% YoY to $37.6 billion, marking its fastest growth rate in 15 quarters.

• Operating margins reached a highly profitable 37.7%.

• This momentum is backed by a massive $364 billion AWS backlog, proving that enterprise cloud and generative AI migration are scaling at an accelerated pace on AMZN's infrastructure.

AI Race & In-House Chip

Instead of 100% dependent on 3rd-party hardware, AMZN’s custom chip division—headlined by its Trainium and Inferentia AI accelerators, has officially exceeded a $20 billion annual revenue run rate, growing at triple-digit percentages year-over-year.

• The Ecosystem Moat: Anthropic is scaling up to 5 gigawatts of current and future Trainium capacity, while OpenAI has committed to roughly 2 gigawatts of Trainium capacity starting to ramp in 2027.

• The AI Platform: Generative AI workload demand is verticalizing rapidly. In Q1 2026, more tokens were processed through Amazon Bedrock than in all prior years combined, with customer spending climbing +170% QoQ.

Quantum Front: Institutional Cloud Integration

The strategic necessity of quantum computing has moved from an academic pursuit to a core national defense objective.

In May 2026, the Trump administration has rollout $2 billion of federal grants and equity investments through the CHIPS and Science Act - that signals an aggressive push to de-risk and cajole this nascent industry into commercial maturity. (see below)

By funding domestic hardware foundries, Washington is building a protected physical supply chain—creating a wave of state-backed processing power that now requires a scalable commercial outlet.

This is exactly where AWS captures the value of that federal injection.

Through Amazon Braket, AMZN operates as the primary cloud broker for this expanding quantum ecosystem, integrating diverse subsidized hardware modalities, like neutral-atom and superconducting qubits, into a single managed interface.

By acting as the digital bridge between government-funded hardware vendors and enterprise developers, AWS ensures that the sovereign computing race is deployed, managed, and monetized directly on AMZN’s infrastructure.

AMZN’s Amazing YTD Performance.

As of 01 Jun 2026 end day

AMZN has been on a roll in 2026. (see above)

AMZN’s YTD stock price movement illustrates the company's clear outperformance against the major benchmarks of $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$.

As of 01 Jun 2026, it posted a strong +15.35% gain at $261.26 /share.

AMZN’s price action shows a close historical correlation with the tech-heavy Nasdaq especially, during the volatile February & March corrections, though it proved far more resilient by tracking closer to the defensive buffer of the S&P 500 index.

This is noticeable in the sharp, volume-backed capitulation in early February 2026, where daily volume spikes approached the 200 million share mark, effectively established a durable bottom for the stock.

Following that institutional accumulation, a dramatic April 2026 breakout fueled by high-volume green days allowed AMZN to completely decouple from the languishing Nasdaq and climb toward new highs.

This sustained divergence into May underscores aggressive accumulation, positioning the e-commerce & cloud giant as a clear market leader heading into H2 2026.

I hope I have been successful in telling the story of AMZN as a stealth investment, away from the glitz and fluff like certain EV maker. Ha, Ha. Have I ?

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