Amazon Stock Is Overbought Amid Globalstar Deal. Is a Pullback Coming?

Amazon (AMZN) shares rallied on April 14 after the tech titan announced a definitive $11.6 billion agreement to acquire Covington-headquartered satellite connectivity firm Globalstar (GSAT). 

The bullish momentum drove AMZN’s relative strength index (14-day) into the mid-70s, signaling “overbought” conditions that often precede a sharp correction. 

Following today’s surge, Amazon stock is up roughly 8% versus the start of this year.

Why Amazon Stock May Not See a Pullback in the Near Term

The acquisition of Globalstar is a strategic “masterstroke” that transforms Amazon from a satellite aspirant into a functional Direct-to-Device (D2D) leader. 

By absorbing GSAT’s established satellite fleet and licensed S-band spectrum, AMZN effectively bypasses years of regulatory hurdles and FCC deployment deadlines. 

Furthermore, a concurrent agreement with Apple (AAPL) ensures the Nasdaq-listed giant will now power the satellite SOS and messaging features for millions of iPhones and Apple Watches. 

This vertical integration is bullish for AMZN shares as it doesn't only strengthen the company’s Leo infrastructure, but also secure a high-profile, recurring sales stream from one of the world’s largest tech ecosystems. 

Goldman Sachs Continues to See Upside in AMZN Shares

Goldman Sachs’ senior analyst Eric Sheridan maintained his “Buy” rating on Amazon shares today, with a $275 price target indicating potential upside of about 10% from here. 

In his research note, Sheridan cited strengthening confidence in AWS revenue growth, which he believes will accelerate into 2026 fueled by AI demand and custom silicon returns. 

Moreover, the investment firm remains constructive on AMZN’s high-margin advertising segment as well, noting the company is a primary beneficiary of shifting digital budget allocations across the industry.  

And options traders also seem to agree with Sheridan’s positive stance. 

The put-to-call ratio on contracts expiring mid-July sits at 0.39 currently, indicating a strong bullish skew, with the upper price on those contracts set at $279 currently. 

How Wall Street Recommends Playing Amazon

What’s also worth mentioning is that Goldman Sachs is actually among the more conservative Wall Street firms on AMZN stock. 

The consensus rating on Amazon sits at “Strong Buy” currently, with the mean price target of about $286 indicating potential upside of nearly 15% from here.