Amazon (AMZN) Taps SpaceX for 3 Kuiper Satellite Launches
Amazon AMZN continues to progress well in the space technology field on the back of its Project Kuiper, which focuses on the creation of a constellation of low-Earth orbit satellites in order to provide high-speed broadband service.
This is evident from Amazon’s latest deal with its competitor, Elon Musk’s SpaceX. In the agreement, Amazon has signed a contract to launch its Kuiper satellites on SpaceX’s three Falcon 9 launches.
Falcon 9 launches are expected in mid-2025.
The latest move reflects Amazon’s aggressive stance to make Project Kuiper successful, along with taking care of the Federal Communications Commission rule, which requires Amazon to launch half of its planned 3,236 satellites by July 2026, with the entire constellation to be deployed by July 2029.
The deal is one of the solid strategies of Amazon since SpaceX is known to be the most active rocket operator in the world, which has successfully launched several broadband satellites of other companies as well as low-orbit satellites of its Starlink, the biggest competitor of Project Kuiper.
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Other Kuiper Efforts
Apart from SpaceX, Amazon partnered with Arianespace, Blue Origin and United Launch Alliance to execute Project Kuiper. Per the terms, these partnerships will provide heavy-lift launch services to Project Kuiper.
Amazon has booked 77 launches with the trio and the deal keeps space for more launches when needed. The company is likely to pay about $7.4 billion for Kuiper launches over the next five years.
We note that the e-commerce giant recently launched the first pair of prototypes of its Internet satellite.
The company sent its first two Internet satellites, Kuipersat-1 and Kuipersat-2, to the desired 311-mile-high orbit by launching them on top of an Atlas V rocket from Cape Canaveral Space Force Station, Florida.
The rocket was operated by the United Launch Alliance, the joint venture of Boeing and Lockheed Martin.
To Conclude
The Internet is ubiquitous and its increasing user penetration across the world has created immense growth opportunities for several companies.
Amid this backdrop, we believe that Amazon’s Project Kuiper will likely gain strong momentum. The company’s growing efforts and investments in Kuiper are expected to yield high returns over the long haul.
This, in turn, will aid Amazon in winning investors’ confidence in the days ahead.
AMZN has gained 70.7% in the year-to-date period.
Zacks Rank & Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are NVIDIA NVDA, Badger Meter BMI and Arista Networks ANET. While NVIDIA and Badger Meter each sport a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of NVIDIA have gained 229.5% in the year-to-date period. NVDA’s long-term earnings growth rate is currently projected at 13.5%.
Shares of Badger Meter have gained 57% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 79.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
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Original: NVDA Feed: Amazon (AMZN) Taps SpaceX for 3 Kuiper Satellite Launches