Stocks
October 28, 2026
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- Amazon stock received a $348 UBS price target as the FCC approved its $11.57 billion Globalstar acquisition
- Internal forecasts reportedly put Amazon’s devices gross loss at $612 million, and Alexa+ cloud costs at $1.7 billion in 2026
- MarketCapOf values Amazon at roughly $2.74 trillion, about 252 times Globalstar’s $10.89 billion market capitalization
Amazon’s satellite ambitions have moved a step closer to reality, just as investors get another reminder of how expensive its expansion has become. The FCC has approved its Globalstar acquisition, while internal forecasts reportedly show mounting pressure on the devices business. Yet UBS has raised its Amazon stock price target ahead of earnings. The bank’s optimism is mostly on AWS, setting up a test of whether cloud growth can outweigh concerns about the company’s spending.
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Amazon Globalstar Deal Clears a Regulatory Hurdle
The FCC approved Amazon Leo’s $11.57 billion purchase of Globalstar on October 27, advancing its effort to compete with SpaceX’s Starlink. The Amazon Globalstar deal would bring approximately 25 MHz of mobile-satellite spectrum and infrastructure to support direct-to-device services. This could help extend connectivity into areas beyond the reach of conventional mobile networks.
FCC approval does not mean the acquisition has closed. Globalstar’s merger documents identify additional regulatory requirements and conditions that must be satisfied before completion.
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Alexa and Devices Add to Amazon’s Cost Pressures
In other news, Amazon is confronting a more immediate problem, which is the cost of selling and running its consumer products.
An internal planning document forecast a $612 million gross loss for its first-party devices business in 2026, exceeding a leadership target of $438 million, according to reports. Rising memory-chip prices were squeezing profitability. The estimate excludes operating costs such as research and marketing.
Earlier internal projections put Alexa+ cloud costs at roughly $1.7 billion this year. Those estimates help explain why Amazon has explored routing more requests to cheaper in-house systems rather than relying as heavily on Anthropic’s models.
It should be noted that they are internal forecasts, not reported full-year results, but they show the pressure behind Amazon’s AI spending.
Why UBS Sees More Upside for AMZN Stock
UBS is looking beyond those costs. Analyst Stephen Ju raised the firm’s Amazon stock price target to $348 from $318, maintaining a Buy rating.
His argument centers on AWS. UBS forecasts a 46% operating margin in 2027, compared with consensus expectations near 38%, believing revenue growth could outpace the additional operating expenses.
Ju also acknowledged investor concerns that 2027 capital expenditure could exceed $300 billion and leave little or no free cash flow. This figure reflects the spending scenario discussed in his analysis, not company guidance.
Amazon and Globalstar’s Market Values Compared
MarketCapOf puts Amazon’s market capitalization at approximately $2.74 trillion, against $10.89 billion for Globalstar. Amazon is roughly 252 times larger by market value.
Holding Globalstar’s share count constant, the tool calculates a hypothetical GSAT price of approximately $21,140 if it matched Amazon’s market capitalization, versus $84.04.
For AMZN stock, Amazon’s October 29 earnings will offer the next check on that argument. AWS growth, margins, and spending plans will matter more than the higher target alone.
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