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Amazon (AMZN) Boosts Project Kuiper With Satellite Launch
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Amazon (AMZN - Free Report) continues to progress well in the space technology field on the back of its Project Kuiper, which focuses on the creation of a constellation of low-Earth orbit satellites to provide high-speed broadband service.
This is evident from the latest launch of the first pair of prototypes of its internet satellite.
The company sent its first two internet satellites, Kuipersat-1 and Kuipersat-2, to the desired 311-mile-high orbit by launching them on top of an Atlas V rocket from Cape Canaveral Space Force Station, Florida.
The rocket was operated by the United Launch Alliance, a joint venture between Boeing and Lockheed Martin.
Amazon could establish the connection with both satellites in less than an hour after the launch.
Both satellites are likely to beam internet connections from space to the company’s flat, square antennas for consumers on the ground.
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 - 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.
We note that the Federal Communications Commission has set a deadline to launch half of its 3,236 satellites by July 2026, with the full constellation to be deployed by July 2029.
Amazon recently reiterated that its first-production internet satellites are on track to be launched in the first half of 2024. It also intends to start beta-testing the network with customers by the end of 2024.
In this regard, the company’s partnership with Arianespace, Blue Origin and United Launch Alliance to execute Project Kuiper remains noteworthy. Per the terms, these partnerships will provide heavy-lift launch services to Project Kuiper.
Amazon has booked 77 launches with the trio and the deal keeps space for more launches when needed. Moreover, the company is likely to pay about $7.4 billion for Kuiper launches over the next five years.
Wrapping Up
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. AMZN has gained 55% over the past year.
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. The Starlink network already has more than 5,000 satellites in space. The Starlink satellite internet service has also reached more than 2 million customers.
Zacks Rank & Other Stocks to Consider
Currently, Amazon sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Amazon (AMZN) Boosts Project Kuiper With Satellite Launch
Amazon (AMZN - Free Report) continues to progress well in the space technology field on the back of its Project Kuiper, which focuses on the creation of a constellation of low-Earth orbit satellites to provide high-speed broadband service.
This is evident from the latest launch of the first pair of prototypes of its internet satellite.
The company sent its first two internet satellites, Kuipersat-1 and Kuipersat-2, to the desired 311-mile-high orbit by launching them on top of an Atlas V rocket from Cape Canaveral Space Force Station, Florida.
The rocket was operated by the United Launch Alliance, a joint venture between Boeing and Lockheed Martin.
Amazon could establish the connection with both satellites in less than an hour after the launch.
Both satellites are likely to beam internet connections from space to the company’s flat, square antennas for consumers on the ground.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon’s Stance 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 - 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.
We note that the Federal Communications Commission has set a deadline to launch half of its 3,236 satellites by July 2026, with the full constellation to be deployed by July 2029.
Amazon recently reiterated that its first-production internet satellites are on track to be launched in the first half of 2024. It also intends to start beta-testing the network with customers by the end of 2024.
In this regard, the company’s partnership with Arianespace, Blue Origin and United Launch Alliance to execute Project Kuiper remains noteworthy. Per the terms, these partnerships will provide heavy-lift launch services to Project Kuiper.
Amazon has booked 77 launches with the trio and the deal keeps space for more launches when needed. Moreover, the company is likely to pay about $7.4 billion for Kuiper launches over the next five years.
Wrapping Up
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. AMZN has gained 55% over the past year.
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. The Starlink network already has more than 5,000 satellites in space. The Starlink satellite internet service has also reached more than 2 million customers.
Zacks Rank & Other Stocks to Consider
Currently, Amazon sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology sector are Applied Materials (AMAT - Free Report) , Arista Networks (ANET - Free Report) and Carrier Global (CARR - Free Report) . While Applied Materials sports a Zacks Rank #1 (Strong Buy), Arista Networks and Carrier Global each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Materials have gained 58.1% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
Arista Networks shares have gained 44.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
Carrier Global shares have gained 57.4% in the year-to-date period. CARR’s long-term earnings growth rate is currently projected at 10.12%.