Citibank: Reiterates "Buy" rating on Amazon, acquires Globalstar to accelerate low-orbit satellite direct connection device strategy.

Citigroup released a report stating that Amazon had announced plans to acquire Globalstar for approximately $11.6 billion. The bank believes that with Globalstar's satellite assets, spectrum resources, and operational capabilities, this acquisition will significantly accelerate Amazon's deployment plan for its Leo network, enhance its technological capabilities, and enrich its product portfolio. As part of the acquisition, Amazon also announced that Amazon Leo will be responsible for providing satellite connectivity services for iPhones and Apple Watches, further extending the existing partnership between Globalstar and Apple. With 241 satellites already in orbit and services set to launch officially by mid-year, the report believes that the strategic value of Amazon Leo to Amazon and its core retail business will become more apparent, especially in a relatively limited market competition situation. Due to accelerating revenue growth and continuous improvement in profitability, the bank reaffirmed its "buy" rating and maintained a target price of $285.