Wells Fargo lowered the firm’s price target on Amazon.com to $225 from $232 and keeps an Overweight rating on the shares following a deep dive into the company’s Kuiper satellite internet service, which will be available commercially by the end of 2025. Heavy upfront costs related to satellite launches, commencing in the second half of 2024, reduce operating income forecasts for Amazon from 2025 through 2027, the analyst tells investors in a research note. The firm says Kuiper presents an attractive opportunity longer term for Amazon, but also unclear synergy with its core operations. It estimates $11B of launch costs as Kuiper deploys 3,236 satellites from 2024 to 2029.
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