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▲ Amazon (AMZN), SpaceX (SPCX)/AI Generated Image
Amazon (AMZN) and Space Exploration Technologies (SPCX) have entered a competition to preempt consumers' digital lifestyles across shopping, AI, satellite internet, and mobile connectivity. However, the risk-adjusted winner is leaning towards Amazon.
According to Nasdaq on July 2 (local time), Amazon and SpaceX are aiming for a larger role in all aspects of consumers' daily lives, from shopping and content viewing to using smart home devices and connecting to the internet. Amazon has already secured consumer touchpoints in e-commerce, advertising, subscriptions, cloud, and smart home devices, while SpaceX is moving closer to the consumer telecommunications market with Starlink satellite broadband and direct-to-cell phone connectivity technology.
In terms of scale, Amazon's dominance is overwhelming. Amazon recorded net sales of $716.9 billion in 2025, while SpaceX's revenue was only $18.7 billion. Amazon generates revenue at various points in the consumer purchase journey, earning $269.3 billion from online stores, $172.2 billion from third-party seller services, $68.6 billion from advertising, $49.6 billion from subscriptions, and $128.7 billion from AWS cloud.
Amazon's advertising and cloud are key pillars in dominating consumers' digital lifestyles. In the first quarter, advertising revenue increased by 24% year-over-year to $17.2 billion, and AWS revenue grew by 28% to $37.6 billion, with operating profit increasing to $14.2 billion. Amazon launched Alexa for Shopping, an AI shopping assistant combining Rufus and Alexa+, and has secured AI infrastructure demand from large customers such as OpenAI, Anthropic, and Meta Platforms (META).
Amazon has also pulled out a counter-attack card in satellite internet. Amazon Leo has expanded to 367 satellites as of mid-June and has secured over 100 rocket launch contracts for additional deployment. The acquisition agreement with Globalstar could provide the foundation for direct-to-cell phone voice, data, and messaging services starting in 2028, and a multi-year contract with Delta Air Lines will install Amazon Leo satellite technology on 500 aircraft starting in 2028.
SpaceX's consumer strategy hinges on Starlink Mobile. SpaceX provides direct-to-cell phone connectivity services with T-Mobile US in the United States, allowing compatible cell phones to connect via Starlink in areas where conventional base station signals are weak or unavailable. Starlink has already secured approximately 10.3 million subscribers, and in January, the U.S. Federal Communications Commission (FCC) authorized SpaceX to deploy an additional 7,500 second-generation Starlink satellites, expanding its approved network to 15,000.
However, SpaceX's growth potential comes with high stock valuations and execution risks. Despite adjustments since its IPO, SpaceX is trading at approximately 82 times its trailing 12-month revenue and is heavily dependent on Starlink revenue to fund its rocket, AI infrastructure, spectrum expansion, and mobile businesses. Starship has not yet carried commercial payloads, and delays would burden Starlink's expansion efficiency. Nasdaq evaluated that while SpaceX could grow into a more disruptive connectivity company, the risk-adjusted winner in the consumer digital lifestyle competition is Amazon.
[Article Key Summary]
-Amazon recorded net sales of $716.9 billion in 2025, securing consumer touchpoints across shopping, advertising, subscriptions, cloud, and smart homes.
-SpaceX aims to enter the mobile telecommunications market based on approximately 10.3 million Starlink subscribers and an approved satellite network of 15,000.
-Nasdaq assessed that while SpaceX has significant growth potential, considering its high stock valuation and execution risks, Amazon is the risk-adjusted winner.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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