Could Amazon Be on the Brink of a Huge Mistake?
Amazon.com (NASDAQ: AMZN) is making a big mistake -- and no, I'm not talking about its plan to lay off 10,000 workers, announced earlier this week.
As my fellow Fool Jeremy Bowman explained on Monday, CEO Andy Jassy's plan to right-size Amazon's workforce holds the potential to save the internet retailer as much as $1 billion a year in salaries -- which is great. Unfortunately, $1 billion is peanuts in light of the potential $10 billion in cash that Amazon wants to throw into an ill-considered effort to compete with SpaceX in satellite internet.
SpaceX didn't invent the idea of transmitting broadband internet from space. Other companies like Hughes, Viasat, and Iridium were doing satellite-based internet long before SpaceX came on the scene. But SpaceX has inarguably made the biggest splash in this business, launching more than 3,500 Starlink satellites into orbit over the past two years (of which approximately 92% remain in service today).
Source Fool.com
