Everybody and their mothers seem to want in on the ‘new space race’ these days, with Amazon (NASDAQ: AMZN) becoming the latest extra-terrestrial to gaze up at the stars.
Founder Jeff Bezos stepped down as CEO earlier this year to focus on his actual space company, Blue Origin, so what’s the difference?
Amazon’s all about the internet
The world runs on the internet, let’s not pretend otherwise. When teachers and parents would scold you for your overreliance on this wonderful/terrible tool, they’d always hit you with a:
“What would you do if the internet stopped working?”
Nothing. Literally, because the internet is an almost immeasurably valuable industry, estimated to be worth roughly $2 trillion to the U.S. economy alone every year.
And now, in its inexorable march towards global domination, Amazon aims to launch satellites into space to provide high-speed internet to anywhere in the world. Known as ‘Project Kuiper’, Amazon has confirmed that it will launch two test satellites in Q4 2022, with plans to eventually have 3,236 similar machines in low Earth orbit. Amazon currently has a partnership with Verizon, through which it can provide internet services.
Sound familiar? Probably because it’s almost identical to Elon Musk’s SpaceX subsidiary, Starlink, which is miles ahead of the pack in this regard — it already has roughly 1,600 satellites in orbit.
So, will this work out for Amazon? Probably, because Amazon’s a massive company with fingers in a lot of pies, and the internet is a massive market with a lot of growth potential still.
But it’s no sure thing, and we’re a long way off success yet. However, for bullish investors, what harm in tacking on ‘space’ as yet another avenue for growth in Amazon’s storied existence?
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.