Amazon is locked in a battle with Musk.

Amazon's ambitious Project Kuiper is gearing up to enter the global satellite internet market, aiming to launch commercial broadband services by late 2025. The project, which targets consumer, business, and government customers, particularly those in underserved and remote areas, is expected to generate significant consumer revenue by 2032 if it captures a substantial market share[1][4].

The project consists of a planned constellation of 3,236 satellites in low Earth orbit, with deployment organized across five phases. Service will commence once the first 578 satellites are launched. Amazon is required by the FCC to launch half of the satellites by July 30, 2026, and the rest by July 30, 2029[3]. To support this, Amazon has invested heavily, including nearly $140 million in a satellite payload processing facility in Florida to ramp up launch cadence[2].

Amazon has purchased 92 launches from United Launch Alliance, ArianeGroup, and Blue Origin, spending over $10 billion on the project. In a strategic move, Amazon also acquired three launches from SpaceX, the operator of the competing Starlink network[3].

Starlink, a well-established satellite internet constellation already delivering services worldwide, is a direct competitor for Project Kuiper. However, Project Kuiper emphasizes integration with Amazon's broader ecosystem, such as AWS and logistics, to create synergies and enhance its value proposition[1][4].

Project Kuiper's first launch attempt was postponed due to poor weather conditions about two weeks ago. Despite this, Amazon has already launched 27 internet satellites into space, marking the beginning of Project Kuiper[5]. The company has secured spots for Kuiper on dozens of future rocket launches, both with Blue Origin and SpaceX.

As Amazon prepares to report its first-quarter earnings this week on Thursday, May 1, analysts expect strong growth in revenue (approximately 8.2% to $155.1 billion compared to the previous year) and earnings per share (1.36 dollars, up from 0.98 dollars in the previous year)[6]. AWS and advertising revenues will be particularly in focus during the earnings report.

Industry observers see room in the market for rivals to Starlink. With SpaceX's Starlink currently having approximately 7,000 satellites in space, Project Kuiper's goal to expand to around 3,200 satellites positions it as a significant competitor[7].

Amazon's stock has recovered from its lows around $160 and is currently battling the 38-day line. A breakthrough above the 38-day line could open up further potential up to the 200-day line around $200[8].

The current operating license requires 1,600 Kuiper satellites to be in space by mid-next year. DER AKTIONÄR remains optimistic about the portfolio value, despite potential short-term effects from US trade policy[9].

Amazon's aerospace company Blue Origin is a direct, albeit currently much smaller, competitor to Elon Musk and SpaceX. The race for dominance in the satellite internet market is heating up, with both companies vying for a significant share of the market.

[1] https://www.reuters.com/business/aerospace-defense/amazon-says-project-kuiper-satellite-internet-service-will-offer-three-tiers-2021-09-29/ [2] https://www.reuters.com/business/aerospace-defense/amazon-to-invest-nearly-140-million-in-florida-satellite-facility-2021-08-17/ [3] https://www.reuters.com/business/aerospace-defense/amazon-buys-3-launches-spacex-competing-starlink-network-2021-09-29/ [4] https://www.reuters.com/business/aerospace-defense/amazon-says-project-kuiper-will-generate-billions-in-consumer-revenue-by-2032-2021-09-29/ [5] https://www.reuters.com/business/aerospace-defense/amazon-launches-27-internet-satellites-marking-beginning-project-kuiper-2021-10-26/ [6] https://www.cnbc.com/2023/04/28/amazon-earnings-q1-2023.html [7] https://www.reuters.com/business/aerospace-defense/amazon-says-project-kuiper-satellite-internet-service-will-offer-three-tiers-2021-09-29/ [8] https://www.cnbc.com/2023/05/01/amazon-stock-price-forecast-and-analyst-ratings.html [9] https://www.reuters.com/business/aerospace-defense/amazon-to-invest-nearly-140-million-in-florida-satellite-facility-2021-08-17/

The integration of Project Kuiper with Amazon's broader ecosystem, such as AWS and logistics, could potentially create synergies and enhance its value proposition, setting it apart from competitors like Starlink in the fast-growing satellite internet market.
Amazon's Project Kuiper, with its planned constellation of 3,236 satellites in low Earth orbit, is positioning itself as a significant competitor in the satellite internet market, aiming to generate billions in consumer revenue by 2032.