Amazon Challenges SpaceX Dominance in Satellite-Based Connectivity Market

Amazon's push into satellite-based connectivity has raised eyebrows for SpaceX investors. The e-commerce giant is targeting the same $1.6 trillion market that Elon Musk's company dominates, with a constellation of Low Earth Orbit (LEO) satellites.

SpaceX currently leads the pack with over 11,000 active satellites in orbit. Its most profitable business segment is providing internet connectivity via LEO satellites, which generated $4.3 billion in revenue in the second quarter, up almost 66% from last year's period.

Amazon, on the other hand, has contracted launch services from Arianespace and already has about 400 satellites in orbit. It plans to start providing internet connectivity this year and is adding six more launches to its commitment.