Amazon's ambitious initiative to provide internet services from space, known as Project Kuiper, is encountering significant production hurdles. The project is tasked with deploying over 1,600 satellites into orbit by next summer. However, it has completed the manufacturing of only a few dozen satellites despite being more than a year into its production schedule, according to several sources familiar with the matter.
These challenges could pose a threat to Amazon's ability to meet crucial regulatory deadlines. The slow pace of satellite manufacturing may hinder the company's goal of establishing a full-scale satellite network aimed at providing global internet coverage.
The project, which aims to rival similar ventures such as SpaceX’s Starlink, faces pressure to accelerate its production capabilities to avoid potential delays and fulfill its commitments. The success of Project Kuiper is critical for Amazon as it seeks to expand its presence in the space-based internet service market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 66 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $250.68 with a high estimate of $295.46 and a low estimate of $195.00. The average target implies an upside of 44.75% from the current price of $173.18. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.
Based on the consensus recommendation from 72 brokerage firms, Amazon.com Inc's (AMZN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN, Financial) in one year is $183.77, suggesting a upside of 6.12% from the current price of $173.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amazon.com Inc (AMZN) Summary page.
