Amazon.com, Inc.: Update on Leo & Satellite Connectivity

Research evidence excerpt

Amazon.com, Inc.: Update on Leo & Satellite Connectivity

Equity Research

U.S. Internet

9 June 2026

Amazon.com, Inc.

Update on Leo & Satellite

Connectivity

AMZN's Leo constellation is nearing an important milestone AMZN OVERWEIGHT

that will allow it to 1) launch the consumer service, and 2) U.S. Internet POSITIVE

begin capitalizing costs in 4Q26. Being second place in an Price Target USD 330.00

Price (05-Jun-26) USD 246.03

enormous industry (satellite connectivity) is still a very Potential Upside/Downside +34.1%

attractive proposition for AMZN bulls. Source: Bloomberg, Barclays Research

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The Key Takeaway: The recent headlines around launch delays, Blue Origin's explosion, and

other factors have raised some near-term concerns for Leo, but we think the long-term thesis Alex Hughes

remains bullish and intact. Connectivity is an enormous market that likely evolves into +1 212 526 3069

alexander.hughes@barclays.comoligopoly-like structures with the industry leader way in front, but solid revenue opportunities

for the second- and third-place companies. Based on the current launch schedule, Leo should

be in a position to introduce the consumer service later this year (mid-3Q), which could be a Michael DiSanto

small sentiment tailwind for AMZN. Leo has several structural disadvantages vs. the industry +1 212 526 1054

michael.disanto@barclays.comleader, including launch dependency and lower capacity at any given date, but as we've seen in