The Case For AMZN’s Climb To $300 – Why Citron Says It’s ‘Simple Math’

• Despite trading at around 30 times its earnings, AMZN shares remain below their five-year and 10-year average.
• Citron added that despite being present across multiple segments, the market may still be underestimating Amazon’s “world domination.”
• Earlier on Tuesday, Amazon acquired Globalstar to build a next-generation satellite network.

Citron Research said on Tuesday that Amazon.com Inc. (AMZN) shares could climb to $300, following the company’s deal to acquire Globalstar to strengthen its push into direct satellite-to-phone connectivity.

AMZN shares are on track for a seventh straight session of gains, adding around 18% in this rally.

Despite trading at around 30x earnings, AMZN stock remains well below its five-year average multiple of 48x and its 10-year average of above 60x.

In a post on X, Citron Research said the market is still not fully recognizing Amazon’s long-term potential. The firm added that applying historical valuation multiples to forward earnings suggests the stock could have upside toward $300.

“Apply the 5-year average multiple to forward earnings, and $300 isn't a hope; it is simple math,” Citron Research said. 

Amazon Acquires Globalstar For $90 Per Share

Amazon’s acquisition of Globalstar will give it access to the company’s satellite network, spectrum, and infrastructure in its growing low Earth orbit (LEO) system. This will enable smartphones and other devices to connect directly to satellites, reducing reliance on traditional cell towers and extending coverage to remote areas.

Under the terms, Globalstar shareholders can receive either $90 per share in cash or Amazon stock, a 23% premium to Globalstar’s closing price on Monday.

Amazon plans to roll out its upgraded direct-to-device services starting in 2028, supporting voice, messaging, and data without specialized hardware. The tech giant added that the acquisition will accelerate its plans to build a next-generation satellite network.

Amazon’s ‘World Domination’

Citron added that despite being present in satellites, AI chips, data centers, robotics, and logistics markets, the market may still be underestimating Amazon’s “world domination.” It also has a rapidly growing ad business that generates nearly twice TikTok’s revenue and is expanding faster than Meta’s, the firm added.

Last week, Citron Research pointed to Amazon’s growing strength in AI, calling it a serious challenger to Nvidia’s dominance in semiconductors. The firm said Amazon’s AI chips could represent a “trillion-dollar opportunity.”

How Did Retail Traders React?

Retail sentiment on Stocktwits remained ‘extremely bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user called Amazon’s acquisition of Globalstar a “long-term positioning.”

Year-to-date, the stock has gained around 7%.

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