- - Amazon’s Quiet $10B Bet on Satellite Internet — and Why It Could Power Amazon Stock Higher

Tobi Opeyemi AmureDecember 12, 2025 at 10:48 AM

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Jacob Wackerhausen / Getty Images

Amazon’s quietly massive bet on satellite internet, now branded Amazon Leo. But actually, this could be more than $10 billion gamble, but something that could eventually reshape the company’s growth story. If the company executes, that constellation may not only challenge Starlink but also open up new revenue streams that support a higher stock price.​

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According to Amazon’s own disclosures and Federal Communications Commission (FCC) filings, the company has committed over $10 billion to building a low Earth orbit broadband network previously known as Project Kuiper. The initiative aims to beam high-speed, low-latency internet to underserved regions worldwide, turning a costly infrastructure project into a potential global platform for connectivity and cloud services.

For long-term investors, that combination of infrastructure leverage and services revenue is exactly the kind of optionality Wall Street tends to reward with higher valuations — find out how below.​

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What Amazon Leo Is

Amazon Leo, formerly Project Kuiper, is a planned constellation of more than 3,200 satellites designed to deliver broadband from low Earth orbit (Leo). The network targets customers between mid-northern and southern latitudes, where gaps in terrestrial broadband create an opening for satellite-based service at scale. Unlike traditional geostationary satellites, these lower-orbit spacecraft are meant to reduce latency enough to support streaming, cloud applications and potentially edge-computing workloads.​

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The FCC has authorized Amazon to deploy 3,236 satellites, with conditions that half the constellation be launched by mid-2026 and the rest by 2029. Reuters reported that Amazon began deploying its first production batch of 27 satellites in April 2025, marking the transition from testing to actual network build-out. This aggressive schedule reflects not only regulatory pressure but also competitive urgency as SpaceX’s Starlink continues to scale its own constellation.​

The $10 Billion Bet

When the FCC approved the project, Amazon pledged to invest more than $10 billion in satellites, ground infrastructure, manufacturing and customer terminals. Amazon Leo’s global regulatory affairs chief, Julie Zoller, told Congress that infrastructure, personnel and technology to construct, produce and administer the network will be funded. For a company of Amazon’s size, that level of capital expenditure is meaningful, but still manageable relative to its broader balance sheet and cash flow.​

Morgan Stanley projected that launch delays and ramp expenses might cost Amazon $1.5 billion in earnings before interest and taxes in the coming years. Per Investors.com, Morgan Stanley’s Brian Nowak stated the expenditures should be “manageable” against a $75 billion to $80 billion operating income base in 2025. In other words, even a multibillion-dollar satellite buildout may look like a rounding error if Amazon’s core businesses continue compounding.​

Why Satellite Internet Matters Strategically

For Amazon, Leo is not just a consumer broadband play; it is also a strategic extension of Amazon Web Services into orbit. With its own network, Amazon can pair connectivity with cloud services in remote regions, offering integrated solutions to enterprises, governments and telecom partners. That creates potential for bundled offerings where AWS, edge computing and satellite bandwidth work together, deepening customer lock-in.​

The Wall Street Journal noted that Amazon wants to be a satellite-internet powerhouse, but still has a long way to go to match Starlink’s head start. The constellation could underpin a five-year growth runway. For investors, those comments underscore that the market is beginning to view Leo less as a science project and more as a long-term strategic asset.​

Implications for Amazon Stock

The near-term impact of Leo on Amazon’s stock is mixed, as some firms see margin pressure while others highlight latent upside once revenues ramp. According to Investors.com, Wells Fargo lowered the company because satellite investment could hurt retail profitability even as Amazon cut costs. Later analyst comments, including UBS upgrades, stressed that Amazon’s capital expenditure in Kuiper has not yet been completely reflected in earnings power, according to CNBC. ​

Several analysts call Amazon a “coiled spring,” suggesting that investments in AWS, advertising, data centers and its satellite network might unlock significant operating leverage in the coming years. If Leo unlocks additional high-margin service lines, particularly in AWS, it might justify higher long-run free cash flow predictions and a higher valuation multiple. Instead of an expensive experiment, Amazon’s $10 billion satellite internet project might spark its next stock surge. ​

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