Amazon Gains UBS Buy Rating as $11.6B Globalstar Deal Spurs 7-Day Rally
Investment firm UBS upgraded Amazon to a Buy rating as shares rallied seven straight days following the announcement of an $11.6 billion Globalstar acquisition plan. The stock trades at a forward P/E of 30x and a P/OCF of 15x, suggesting undervaluation relative to projected cash flows.
1. UBS Upgrade to Buy
On April 14, UBS raised its rating on Amazon to Buy at a reference price of $249.02, highlighting the company’s recent operational strength and strategic growth potential in cloud and consumer segments.
2. Seven-Day Stock Rally
Amazon shares have climbed for seven consecutive trading days, marking the longest winning streak since 2022 and gaining 3.8% ($9.13) on the day of the upgrade as investor interest surged.
3. $11.6 B Globalstar Acquisition Plan
Amazon announced a plan to acquire satellite operator Globalstar for $11.6 billion to integrate its two dozen satellites into Amazon’s existing low Earth orbit network, aiming to launch direct-to-device services by 2028 pending regulatory approval.
4. Valuation Metrics and Cash Flow Outlook
Despite heavy capital expenditures, Amazon’s forward price-to-earnings ratio of 30x and price-to-operating cash flow of 15x for 2026 indicate significant undervaluation, reflecting expectations of accelerated cash flow growth from high-margin AWS and network investments.