Amazon AMZN is continuously pumping in resources to bolster satellite initiatives. Moreover, it is leaving no stone unturned to facilitate Project Kuiper. Notably, the project aims to create a constellation of low Earth orbit satellites in order to provide Internet worldwide.
The e-commerce giant is looking to strike a deal with commercial real estate broker in order to set up a satellite research-and-development (R&D) headquarter in Redmond for Project Kuiper.
Reportedly, the company is eyeing the former Macy's store at Redmond Town Center for this purpose. Further, the company has plans for two buildings with a total area of 219,000 square feet at the upcoming Kuiper headquarters.
Notably, Amazon has already leased Redmond Corporate Center, which is a two-building 219,600-square-foot property.
The company is witnessing rapid expansion of Project Kuiper and consequently its current facility is unable to accommodate its growing team. Hence, the Kuiper team is expected to the new facility this year.
Increasing Focus on Satellite & Space
Amazon has been eyeing the satellite and space area for quite some time now in a bid to explore the opportunities in this particular field.
With Project Kuiper, the company plans to launch a network of 3,236 satellites into space to create the interconnected network.
Further, the 3,236 satellites will be making up three layers – 784 satellites at an altitude of 590 kilometers, 1,296 satellites will be positioned at the height of 610 kilometers, while the remaining 1,156 satellites will be at an altitude of 630 kilometers.
Apart from Kuiper, AWS’ contract with Iridium Communications IRDM to develop a satellite-based network called CloudConnect for IoT applications remains noteworthy.
Additionally, AWS’ partnership with Lockheed Martin LMT to introduce a new antenna service by combining its AWS Ground Station service with the Lockheed Martin’s Verge antenna network is a major positive.
Further, the cloud leader is in talks with the president of Chile to house and mine astrodata from Chile’s giant telescopes.
Amazon.com, Inc. Price and Consensus
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Apart from Amazon, companies like SpaceX, OneWeb, Telesat and Boeing are also ramping up their initiatives in the satellite space to enable global broadband coverage.
In addition to these, Alphabet’s GOOGL division Google is making every effort to bolster presence in the Internet connectivity space via Project Loon and growing investments on satellites.
Further, the search giant is a member of Chile’s Large Synoptic Survey Telescope (LSST), which will be fully operational in Cerro Pachon in 2022.
Nevertheless, Amazon’s focus toward bolstering its satellite and space capabilities is likely to provide it a competitive edge against the abovementioned companies.
Further, the company, by utilizing its improving IoT technologies in the satellite areas, is likely to lead the pack.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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