Amazon's Satellite Leap: Kuiper Takes Aim at Starlink in Broadband Battle

Amazon's recent stock performance has seen minor fluctuations; while there was a marginal decline of 0.12% last week, the company recorded a 0.52% increase over the past week. Year-to-date, however, the stock price has decreased by 13.41%, positioning Amazon's current market value at $2.016 trillion.

Despite Amazon's latest financial outcome surpassing market predictions, investor sentiment was not entirely optimistic. In post-market trading on Thursday, Amazon shares experienced a drop of up to 5%. The company reported its first-quarter earnings for 2025 with an EPS of $1.59, outperforming the anticipated figure of $1.37, and revenue of $155.7 billion, slightly above analysts' expectations of $155.2 billion. The revenue guidance for the upcoming quarter is projected between $159 billion to $164 billion, closely aligning with the market's midpoint assumption of $161.2 billion.

Cloud computing segment Amazon Web Services (AWS) demonstrated signs of softness, with revenues slightly missing the forecasted $294 billion, bringing in $293 billion. This area's underperformance stood out in the otherwise robust financial report.

Amazon's satellite ambitions took a significant step forward with the successful launch of 27 Kuiper broadband internet satellites. This marks the initiation of its long-delayed space internet network set to compete with SpaceX's Starlink. These satellites are part of a planned constellation of 3,236, designed to provide global broadband services to diverse sectors like consumers, businesses, and governments.

The Kuiper project, a $10 billion investment that began in 2019, is one of Amazon's boldest ventures aiming to challenge established players like SpaceX. With an FCC mandate to have half the constellation launched by mid-2026, analysts speculate Amazon might seek extensions due to initial delays.

Amazon's deployment of these satellites is strategic, targeting rural and remote areas with little to no internet connectivity. This program represents significant growth potential in the satellite broadband market, attempting to leverage Amazon’s consumer product expertise and strong cloud computing infrastructure as competitive advantages.

Amazon plans to provide Kuiper service later this year and has scheduled more satellite launches throughout the year, aiming to expand its coverage gradually towards the more densely populated equatorial regions.

Despite entering the market after SpaceX, Amazon's executives are confident in Kuiper’s ability to coexist and compete effectively, emphasizing the endless nature of Internet demand. Jeff Bezos expressed optimism in Kuiper’s future alongside Starlink’s ongoing success.

As Amazon's next financial report approaches, attention will be on three key metrics: the impact of tariff-related expenses, any changes in Prime membership growth rates due to price adjustments, and AWS's ability to offset retail sector pressures. These factors will be crucial in determining Amazon's financial resilience and strategic positioning moving forward.