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Market Data Table

Breakfast News: Amazon Plans Starlink Challenge

April 2, 2026

Wednesday's Markets
S&P 500 6,575 (+0.72%)
Nasdaq 21,841 (+1.16%)
Dow 46,566 (+0.48%)
Bitcoin $68,129 (+0.48%)

A chart showing Amazon's and Globalstar's share price gains over the past three years, with Globalstar currently up 301% and Amazon up 106%.

1) Amazon Taps Globalstar to Fight Starlink

The FT reports that Amazon (NASDAQ:AMZN) is in talks to buy Globalstar (NASDAQ:GSAT) in a deal potentially worth $9 billion, as it aims to build out a low Earth orbit satellite business. Globalstar surged over 15% ahead of the market open, with Amazon little changed.

Seen as a key push to challenge SpaceX's Starlink service: Elon Musk's Starlink is currently the dominant player in the orbital internet service arena, with Globalstar stock up 230% in the past year, as investors see it as a genuine challenger.
"Globalstar does not comment on industry speculation or rumours": Despite the response from Globalstar, one of the immediate hurdles will be negotiations with Apple (NASDAQ:AAPL), which took a 20% stake in the business back in 2024 and would need to approve any sale to Amazon.

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2) IBM and Arm Target Enterprise Workloads

Hidden Gems recommendation IBM (NYSE:IBM) announced a new collaboration with Arm Holdings (NASDAQ:ARM) for the development of dual-architecture hardware designed to handle heavy artificial intelligence (AI) workloads in a bid to take advantage of growing customer demand.

"IBM continues to invest in hardware platforms … which are designed to bring AI from experimentation into everyday enterprise use": The press release from IBM noted how AI is moving deeper into core business operations for enterprise clients, with the partnership designed to cater to this need.
"Over the last three plus years, we've created more value for our shareholders than the prior 111 years combined": Speaking to Motley Fool co-founder and CEO Tom Gardner in February, IBM CFO James J. Kavanaugh outlined the recent performance of the company, saying they are already focusing on "the next leg of our shareholder value creation model." The stock is beating the S&P 500 by 3% since the September 2024 Hidden Gems recommendation.

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3) Q1 Mega-Deals Hit Record as Value Surges

The first quarter saw the largest number of corporate deals worth over $10 billion struck on record, with long-term attractive fundamentals being pointed to despite uncertainty with heightened geopolitical tensions.

LSEG data shows 22 large-scale deals announced globally: The quarter just topped the previous record of 21 deals from the fourth quarter of 2015, with the total value of all-sized deals announced up around 29% in the first quarter from a year ago.
Tech, financial services, and healthcare lead the way: The perceived higher leniency of pushback on big deals from the Trump administration is another factor noted for the surge, although the number of small deals valued at between $1 billion and $5 billion was lower than last quarter.

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4) Futures Sink as Trump Vows Hard Hits

S&P 500 futures fell by 1.3%, with Nasdaq futures down over 1.5%, as President Donald Trump confirmed the U.S. is close to completing its goals in the Middle East but that the war is not over yet in an address to the nation.

"We're going to hit them extremely hard over the next two to three weeks": The language and rhetoric used, along with a lack of clear timing for an end to the conflict, triggered a sharp move lower in stocks.
Brent crude oil futures surged 6.7% to $107.92 per barrel: The risk of further damage to regional energy infrastructure and no plans for an immediate re-opening of the key Strait of Hormuz saw oil prices spike.

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5) Your Take

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