Amazon (AMZN) Stock; Dips Slightly as FCC Approves 4,500 New Satellites

TLDRs;

• Amazon gets FCC approval to launch 4,500 additional LEO satellites, expanding its Amazon Leo network to 7,700 satellites.

• Amazon stock dips slightly as investors consider deployment challenges, high costs, and potential delays in the satellite program.

• The company plans to begin offering satellite internet services later in 2026 through its Amazon Leo broadband network.

• Amazon Leo project faces strict deadlines, dependency on new rockets, and significant financial investment for full deployment

NEW YORK, Feb. 11, 2026, Shares of Amazon (AMZN) edged slightly lower on Wednesday as investors digested news that the company received Federal Communications Commission (FCC) approval to launch an additional 4,500 low Earth orbit (LEO) satellites.

Amazon.com, Inc., AMZN

The approval brings Amazon’s planned satellite constellation to around 7,700, positioning it to compete more directly with SpaceX’s Starlink network.

FCC Approval Expands Amazon’s LEO Ambitions

Amazon has been steadily building out its satellite internet network, launching over 150 satellites since April 2025. The new approval allows the company to operate satellites at altitudes of up to 400 miles, covering additional frequency bands and expanding geographic reach.

The company aims to start providing satellite internet services later this year through its renamed “Amazon Leo” initiative, formerly Project Kuiper. While the move represents a major milestone for Amazon’s broadband ambitions, investors are cautious, given the scale of the project and regulatory deadlines.

Deadlines and Deployment Challenges

Amazon is required to launch half of the newly approved satellites by February 2032, with the remainder due by February 2035. However, the company has requested an extension to meet an earlier FCC mandate to deploy 1,600 first-generation satellites by July 2026, citing delays in rocket availability.

Analysts note that the deployment schedule heavily depends on newer or less-tested rockets, including Blue Origin’s New Glenn and United Launch Alliance’s Vulcan Centaur. These dependencies create risk, as delays in launch schedules could push Amazon toward further extensions.

Financial Stakes and Investment

The company has invested approximately $10 billion into its satellite project, with plans to allocate an additional $1 billion in 2026. Quilty Space, a satellite research firm, estimates that first-generation deployment costs could reach $16.5 billion to $20 billion, highlighting the financial intensity of building a global LEO network.

Amazon has 17 launches booked, with its next mission scheduled for February 11 via Arianespace. These repeated launches not only reinforce Amazon’s commitment to its broadband ambitions but also make the company a significant client for multiple launch providers.

Competition and Strategic Context

The expansion of Amazon Leo is widely seen as a move to increase network throughput and capacity, particularly in regions where Starlink faces congestion or service limits. While Amazon has emphasized enterprise and commercial clients, earlier messaging aimed at unserved and underserved communities now plays a secondary role.

Industry observers suggest that the satellite initiative could enhance Amazon Web Services (AWS) offerings by providing low-latency, high-bandwidth internet capabilities. However, claims of a strategic edge over rivals like Microsoft or Google are not substantiated, according to available sources.

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