Amazon's stock is on its best run since 2022 as Globalstar acquisition fuels rally

By Christine Ji

Amazon shares are within striking distance of a new record as an $11.6 billion satellite deal and positive cloud momentum boost sentiment

Shares of Amazon are currently on their strongest seven-day run in nearly four years, outperforming all other "Magnificent Seven" peers thus far in 2026.

Amazon.com's latest acquisition of a satellite operator has helped power a winning streak for the tech giant, as shares of the company rallied for the seventh consecutive day on Tuesday.

Amazon's stock (AMZN) closed at $249.02 on Tuesday, marking a 19% gain over the past seven days. That's the best seven-day stretch since August 2022, when the stock rose 24%, according to Dow Jones Market Data. Amazon's stock is just shy of of its 52-week high of $254, a level previously reached last November.

The stock rose 3.8% on Tuesday alone as Amazon announced the acquisition of satellite operator Globalstar (GSAT) on Tuesday in a deal valued up to $11.6 billion. The acquisition accelerates Amazon's satellite-internet ambitions under its Amazon Leo division. Amazon also announced an agreement with Apple (AAPL) for its Amazon Leo network to power existing and future satellite services for the iPhone and Apple Watch. Globalstar's technology allows direct-to-device connectivity, meaning that consumer devices can communicate directly with satellites without additional equipment.

In a Tuesday note, BNP Paribas analyst Nick Jones called the acquisition a "strategic positive that accelerates Amazon Leo's path to meaningful commercialization."

"The Apple partnership further validates demand and positions Amazon to compete more directly in satellite connectivity," Jones added. Amazon Leo is expected to launch services commercially in mid-2026.

Read: Globalstar's stock is soaring. Amazon is buying the company to challenge Elon Musk and Starlink.

Jones said the market is anticipating the deal closing sometime next year. But the financial implications of the acquisition will likely take longer to materialize given Globalstar's much smaller scale. The satellite company generated $273 million in revenue and incurred a $9 million net loss in 2025, compared to Amazon's $717 billion of revenue and net income of $78 billion over the same period.

Beyond Amazon's satellite ambitions, newfound confidence in the company's artificial-intelligence initiatives have also lifted shares in recent days as the stock appears to be shaking off its AI laggard label. Amazon was the worst-performing "Magnificent Seven" stock in 2025, but the stock has since pivoted to become the group's year-to-date leader.

While shares of Amazon have been weighed down by lackluster Amazon Web Services revenue growth, investors seem to be coming around to the company's cloud capabilities. A leaked memo from OpenAI on Monday showed that the AI lab is leaning into its relationship with Amazon as part of a strategy to gain enterprise market share. Amazon recently invested $50 billion in OpenAI and will provide the company with 2 gigawatts of Trainium capacity in the coming years.

See more: Is OpenAI outgrowing Microsoft? A new Amazon alliance raises the stakes.

OpenAI's vote of confidence for Amazon, coupled with Amazon CEO Andy Jassy's shareholder letter last week, signal explosive demand for AWS. Jassy's shareholder letter detailed that the AI revenue run rate for AWS exceeded $15 billion in the first quarter of 2026, and that total revenues from Amazon's custom chip business exceeded a $20 billion annualized run rate.

In a Monday note, Goldman Sachs analyst Eric Sheridan wrote that he anticipates AWS sustaining a low to mid-20% revenue growth rate. He also added that progress toward commercializing Amazon Leo would be a positive step "toward realizing the long-term opportunity around satellite broadband connectivity across a range of devices and formats."

Read: Amazon's stock could soar 50%, as this analyst says investors are looking at AI spending all wrong

-Christine Ji

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04-14-26 1642ET