FCC Clears $11.5B Globalstar Deal as AWS Revenue Seen Up 37% Ahead of Q3
AMZN sits 29% above its 52-week low of $196.
Summary
FCC approval of the $11.5B Globalstar purchase removes the last major regulatory hurdle and hands Amazon spectrum plus satellites for its Leo network, with 40 satellites slated to launch November 13 on a ULA rocket. The preview puts AWS revenue at roughly $42.2B, up 37% year over year — the fastest growth in 18 quarters — with operating margin near 39%, making cloud the main upside driver. Against that, Amazon plans about $220 billion of 2026 spending on infrastructure and non-AI projects, and it is shortening the useful life of some servers and networking gear from six to five years starting 2025, which accelerates depreciation and trims near-term reported earnings. Results land today, October 29, so the setup is whether cloud strength converts into cash flow after Q2's negative free cash flow of $7.6 billion. Separately, Amazon cut about 250 Devices & Services jobs, mostly software roles, after a structural review.
At the time of this announcement, AMZN was trading at $253.75 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.7T. The 52-week trading range was $196.00 to $287.20. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.