Amazon Just Ordered Six More Rockets. Why Starlink Should Not Be Worried Yet.
Amazon just booked six more rockets and locked in enterprise deals with Delta, JetBlue, and Vodafone, yet Starlink still holds advantages that launch contracts alone cannot solve.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) just ordered six additional Ariane 6 launches, expanding its Arianespace commitment for the Amazon Leo satellite network through 2031. Arianespace has already flown three missions in less than five months, placing 100 Amazon satellites into orbit.
The order shows both Amazon’s real commitment to chase SpaceX’s (NASDAQ:SPCX) Starlink and how much of the constellation remains unbuilt. As of the latest quarter, Amazon Leo had nearly 400 satellites in orbit, while Starlink’s fleet already serves millions.
AMZN trades at $256.78, up 11.25% year to date. Analysts carry an average target of $328.17, with 44 buy ratings, 2 hold, and no sells.
Gap Rockets Alone Cannot Close
A constellation is useless until enough of it is in orbit to offer continuous coverage, so cadence becomes the binding constraint for a late entrant. Starlink’s lead runs across launch cadence, satellite manufacturing rate, coverage, service pricing, and subscriber acquisition. Connectivity is a $1.6 trillion market that SpaceX targets through Starlink.
Amazon CEO Andy Jassy told investors Amazon Leo has “close to 400 satellites in orbit, enough to begin initial satellite internet service this year.” Initial service falls well short of scaled service. Amazon has signed real enterprise anchors: JetBlue, Australia’s National Broadband Network, and Kazakhtelecom; Vodafone across Europe and Africa; and Delta Air Lines in-flight Wi-Fi starting in 2028.
Amazon’s Strongest Case
Amazon has the balance sheet almost no challenger can assemble. Its Q2 FY26 revenue reached $200.6 billion with operating income of $27.5 billion. AWS alone grew 37% year over year to $42.2 billion, its fastest pace in 18 quarters.
Jassy earmarked about $200 billion in 2026 capital expenditures across AI, chips, robotics, and low earth orbit satellites. That buildout has to be powered, cooled, and networked by somebody, which is why we pulled together seven suppliers behind the AI data-center wave in a free report.
Free cash flow turned negative at -$7.6 billion TTM because of that build. Diversifying launch across Arianespace, ULA, Blue Origin, and SpaceX itself reduces single-provider risk. Enterprise and government buyers may value a second option, particularly outside the United States.
For the case to become credible over the next year, Amazon needs a visible jump in launch cadence, a public coverage map, and disclosed subscriber or ARPU metrics. Jassy said, “Amazon Leo continues to resonate with prospective customers, with Delta Airlines the latest to sign on.”
Is AMZN Stock a Buy?
Amazon Leo is one line item inside a very large company. AWS backlog stood at $496 billion, and the analyst 2026 EPS estimate has climbed to 1.9549 for Q3, with a full-year average of 12.5686, up from roughly 8.6574 ninety days ago.
Can Amazon close the gap with Starlink fast enough to matter before Starlink becomes harder to displace? Probably not in consumer broadband, although enterprise, aviation, and government deals give Leo a defensible niche. Trading at a 21x trailing P/E with AWS accelerating and satellite optionality attached, AMZN rates a Buy. The satellite gap is real, yet the stock is priced for AWS to keep compounding, with Leo as optionality.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
