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Amazon (AMZN) to Launch Kuiper Internet Satellites in 2024

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Amazon (AMZN - Free Report) reportedly intends to launch its first internet satellites in the first half of 2024, thus putting an end to the quest for these satellites.

Further, the company plans to roll out more than 3,000 satellites in low-Earth orbit in the next few years.

Project Kuiper, which focuses on the creation of a constellation of low-Earth orbit satellites in order to provide high-speed broadband service, is set to conduct the mass production of these satellites in the latter part of 2023.

The beta-testing of these satellites will be done in 2024.

To execute its latest plan, the company unveiled three different terminals or antennas to connect customers with its Kuiper satellites in orbit.

Notably, these terminals will help reduce the costs incurred by the company in providing high-speed internet to its customers.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

 

More on Kuiper

Amazon has been eyeing the satellite and space areas for quite some time now in a bid to explore opportunities.

Under Project Kuiper, the company plans to launch a network of 3,236 satellites into space to create an interconnected network.

The 3,236 satellites will be divided into three layers with 784 satellites at an altitude of 590 kilometers, 1,296 satellites at an altitude of 610 kilometers and the remaining 1,156 satellites at an altitude of 630 kilometers.

Amazon’s latest plan to launch internet satellites in 2024 is in sync with its target to half its entire Kuiper network of 3,236 satellites by 2026.

Last year, the company partnered with Arianespace, Blue Origin and United Launch Alliance to execute Project Kuiper. Per the terms, this partnership will provide heavy-lift launch services to Project Kuiper.

We note that the Internet is ubiquitous and its increasing user penetration across the world has created immense growth opportunities for several companies.

Amid this backdrop, we believe that Amazon’s Project Kuiper will likely gain strong momentum. The company’s growing efforts and investments in Kuiper are expected to yield high returns over the long haul.

This in turn will aid Amazon in winning investors’ confidence in the days ahead. Notably, AMZN has lost 33.1% over the past year.

Further, we believe the latest plans are likely to strengthen Amazon’s competitive position against SpaceX, which has the same ambitions as AMZN.

SpaceX runs the Starlink program, with the help of which it intends to deploy tens of thousands of small satellites to provide broadband internet. Notably, Starlink network already has 4,000 satellites in space.

Zacks Rank & Other Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 26.4% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.

Salesforce shares have lost 6.8% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.

Analog Devices shares have gained 23.6% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.


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