Amazon Satellite Internet Expansion Raises Valuation Questions

Amazon.com Inc (NASDAQ: AMZN) recently announced an expansion of its satellite internet project, Amazon Leo. The company contracted six additional launches with Arianespace, bringing the total planned launches to 24.

This move positions Amazon as the third-largest satellite constellation operator, behind SpaceX's Starlink and OneWeb. The development highlights Amazon's growing footprint in the satellite constellation space.

The company's Price-to-Sales (P/S) ratio stands at 3.51x, slightly above its historical median of 3.44x. This suggests that investors expect sustained revenue growth despite Amazon's unprofitable and cash-flow-negative status.

GuruFocus' proprietary GF Value places Amazon's intrinsic value at $247.80 per share, indicating the stock is roughly 1.7% overvalued relative to its current price of $251.89.