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Amazon Accelerates Orbital Connectivity & AWS Ambitions -...
2026-05-22 · via All Articles on Seeking Alpha

Summary

  • AMZN is quickly turning into a behemoth across the cloud compute, advertising, commerce, subscription/streaming, healthcare/pharmacy, and satellite-based connectivity businesses.
  • The AWS segment is experiencing surging demand from AI workloads, as observed in the growing revenue of +28.4% YoY and the outsized, multi-year backlog of $364B (+92.5% YoY).
  • AMZN is also set to benefit from their new partnership with OpenAI and the expansion with Anthropic, as demand grows for their multi-generation Trainium chips.
  • Significant capex at $200B in FY2026 is fueling both cloud and satellite ambitions, with Amazon Leo's commercial launch and monetization expected from Q3'26 onwards.
  • Despite the recent rally and the overbought signals, AMZN offers great upside potential to my bull-case LTPT of $381.80, with their diversified businesses warranting the premium P/E of 30.62x.
Trajectory of Success – Rocket Ignites from Peak of Coin Stack Growth Chart in Symbol of Financial Breakthrough

J Studios/DigitalVision via Getty Images

I previously rated Amazon.com, Inc. (AMZN), (AMZN:CA) as a Buy in March 2026, thanks to the improved margin of safety/upside potential from the prior correction and the oversold technical indicators.

In this article, I shall

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOG, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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