New York, June 2, 2026, 08:05 EDT
Bank of America is sticking with its Buy on Amazon.com and a $310 target, saying the company’s Leo satellite network is close to first revenue. The bank says this could give investors a new way to look at Amazon beyond its retail, ads, and cloud business. Analyst Justin Post said Amazon has picked up its launch pace—three launches just in the second quarter, and over 300 satellites up by mid-May.
Amazon’s Leo project is now more than a long-term plan. The company said a United Launch Alliance Atlas V rocket launched 29 more Leo satellites on May 29. That takes the total number of deployed satellites to 331 from 12 missions.
Leo runs a low Earth orbit satellite network. Its satellites are closer to the planet than legacy geostationary systems, which Amazon says can cut internet signal lag. Amazon, which rebranded Project Kuiper to Leo, says the network is for homes, businesses and government users who can’t get fixed-line or wireless service now.
Bank of America thinks commercial service could start in the third quarter as launch pace picks up, TipRanks said. The firm puts Amazon’s planned spend at around $25 billion through 2028 for the first version of the constellation, not counting consumer equipment. Bank of America sees a shot at about $14 billion in consumer broadband revenue by 2032 if Amazon gets a 25% share.
Amazon’s satellite push runs alongside the company’s ongoing work to boost logistics profits. In a note, Post flagged automated fulfillment centers, mega-sortation hubs, and flexible delivery stations as having helped lower shipping costs per unit by about 25% since 2021. He left his $310 target unchanged, citing higher labor and fuel costs as still limiting short-term savings.
Amazon’s latest numbers help make the case. First-quarter AWS sales climbed 28% to $37.6 billion. Operating income reached $23.9 billion, up from $18.4 billion last year. North America retail and international units also booked more operating income.
Amazon ended Monday down 3.47% at $261.26. MarketBeat listed the stock lower again in after-hours trade and before Tuesday’s open. Out of 60 analysts tracked by MarketBeat, 57 have buy ratings and three have holds, with an average price target at $312.52.
Rivalry is here now. SpaceX’s Starlink is making fast gains in aviation internet, with American Airlines set to put Starlink on over 500 narrow-body jets starting in the first quarter of 2027. Amazon has also lined up Delta Air Lines for Leo service across 500 planes starting in 2028.
Amazon is pushing to expand Leo past just home internet. In April, Amazon said it would buy Globalstar and have Amazon Leo supply satellite services to certain iPhone and Apple Watch devices, such as Emergency SOS via satellite. The deal, still waiting on regulators and other hurdles, is expected to close in 2027.
Delta CEO Ed Bastian called the airline’s partnership “the best, fastest and most cost-effective technology available.” Amazon CEO Andy Jassy said Leo’s speed and reliability would be important for “businesses, governments, and consumers.” The aviation antenna is built to handle download speeds of up to 1 gigabit per second, according to Amazon. Amazon News
But Bank of America says the runway is tight. The firm pointed to risks like stiffer local retail competition, AWS possibly losing cloud share to AI-focused rivals, and the need for greater AWS capex. Bank of America also mentioned stock swings during shaky economic periods. The satellite rollout hinges on launch timing, getting regulatory OKs, and whether customers actually adopt a service that’s not at scale yet.
