Amazon.com, Inc. (NASDAQ:AMZN) shares are trading higher Tuesday after the company announced it entered into an agreement to acquire Globalstar, Inc. (NASDAQ:GSAT). Citron Research is helping boost the stock with bullish comments following the deal.
- Amazon stock is moving in positive territory. Why are AMZN shares climbing?
Globalstar Deal In Focus
Amazon is set to acquire Globalstar for approximately $11.6 billion or $90 per share. The company said the acquisition will enable its low Earth orbit satellite network to add direct-to-device (D2D) services and extend connectivity beyond traditional cellular networks.
The deal includes Globalstar’s satellite operations, infrastructure and spectrum assets, which Amazon plans to integrate into its Amazon Leo satellite network to support global connectivity across consumer, enterprise and government use cases.
Amazon said the expanded network is expected to deliver voice, data and messaging services directly to mobile devices, with deployment of its next-generation D2D system expected to begin in 2028.
Citron Says Amazon Is Poised For ‘Domination’
Citron Research commented on the move, pointing to Amazon’s expanding footprint across spectrum, artificial intelligence infrastructure, data centers, robotics and logistics, alongside its growing advertising business.
Citron said, “What part of world domination does the market still not get as they acquire $GSAT?”
The firm believes the market is not giving Amazon the credit it deserves in terms of valuation. The stock is trading at approximately 30 times earnings, below its five-year average price-to-earnings ratio of 48x and its 10-year average above 60x. Citron added that applying a five-year average multiple to forward earnings implies a $300 price target.
“It is simple math,” Citron said in the post.
Amazon Shares Edge Higher
AMZN Price Action: At the time of writing, Amazon shares are trading 2.55% higher at $246.02, according to data from Benzinga Pro.
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