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Amazon is trading at $208.78, reflecting a daily decline of 0.85% as U.S. markets opened under pressure. This price action follows a report from Reuters stating that Amazon is in talks to buy satellite telecom group Globalstar in a strategic move to ramp up its low-earth-orbit (LEO) satellite business. Globalstar, which had a market cap of $8.81 billion at its last close, saw its shares surge 12.3% in premarket trading, while Amazon investors appear more cautious regarding the high capital expenditure required to rival SpaceX's Starlink. However, the path to a deal is complex; Apple (AAPL) currently holds a 20% stake in Globalstar, necessitating high-level negotiations between the two tech titans to resolve network capacity sharing. Amazon Globalstar acquisition rumors and Starlink competition The reported deal comes as Amazon deploys its "Leo" network, involving 3,200 satellites, to compete with Elon Musk's Starlink. While Starlink already operates a network of more than 9,500 satellites and services over nine million users, Amazon’s Leo has only 180 satellites in orbit so far. According to Reuters, "Amazon's network would be the closest rival to Elon Musk's Starlink," which is a key driver for SpaceX's potential $1.75 trillion valuation. To bridge this gap, Amazon is targeting Globalstar’s established low-earth-orbit communication satellites that offer voice, data, and asset-tracking services. Amazon stock price prediction and technical support levels Support: $207.17 This is the immediate area where the price is currently finding buyers, aligned with the 9-period Moving Average and previous structural consolidation. Invalidation: $195.61 As long as the price stays above this prior structural low and Fibonacci support, the overall recovery trend remains technically intact. Resistance: $209.78 Amazon needs to close a full day above this specific 21-period Moving Average to prove the short-term uptrend has officially restarted. Next target: $215.00 If the price breaks through the $209.78 ceiling, this previous yearly high is the next major objective as satellite infrastructure news sustains momentum. Conclusion: Satellite expansion fuels Amazon’s long-term strategy Amazon's interest in Globalstar underscores its commitment to becoming a dominant player in global telecommunications. While the $9 billion price tag and the complexity of Apple’s 20% stake present immediate hurdles, the deal would provide Amazon with the spectrum and infrastructure necessary to scale its Leo project rapidly. For traders, the immediate focus remains on the $207.17 support level. As long as Amazon stays above this moving average, the recovery story remains intact; however, a breach could see the stock drift lower as the market digests the costs of this satellite showdown. How does Amazon's satellite network compare to Starlink? Amazon's network, known as Leo, currently has 180 satellites in orbit with a target of 3,200, while Elon Musk’s Starlink already operates a network of more than 9,500 satellites. Why is Amazon stock falling today? Amazon shares fell nearly 2% following the report as investors reacted to the potential for massive capital expenditures and the complexity of negotiating with Apple, which owns a 20% stake in Globalstar.