California-based investment banking firm Roth Capital gave Amazon stock (NASDAQ: AMZN) a ‘buy’ call on Wednesday after the e-commerce giant announced its acquisition of Globalstar for $11.6 billion to expand its satellite communications business. The acquisition comes at a time when Elon Musk’s SpaceX IPO is aiming for a valuation of $2 trillion. Amazon’s expansion in the satellite sector could make SpaceX seek support for broadband-based space connectivity, putting it on the front line.
The market is noticing the strategic move, and Roth Capital provided a new price prediction for Amazon stock. AMZN opened Wednesday’s trading bell at $249 and has surged more than 10% in a week. April has been a good month for the equity as the broader tech sector experienced a surge in value. Stocks such as Google’s Alphabet, Apple Inc, and Meta have turned green this month. The ceasefire in the Middle East is among the leading reasons for the upsurge.
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Amazon Price Prediction: Roth Capital Provides New AMZN Target
Roth Capital’s latest price target for Amazon stock is $285. That’s an uplift and return on investment (ROI) of approximately 15% from its current price of $249. Therefore, an investment of $1,000 could turn into $1,150 if the forecast turns out to be accurate. That’s decent returns, as not every asset in the stock market delivers double-digit gains. Globalstar, which was the rival of Elon Musk’s Starlink, now goes all-in on the space business.
In a note to clients, Roth Capital called the acquisition of Globalstar a “meaningfully de-risk” for large-scale space connectivity deployments. The company’s goal is to reshape space satellite connections by effectively entering the segment. The deal covers Globalstar’s satellite operations, infrastructure, and assets, including its lower-frequency mobile satellite service. Amazon stock is expected to soar as it now enters the terrestrial industry.