Roth Capital has issued a stark warning for Amazon (NASDAQ: AMZN) investors, slapping a 'buy' rating on the stock with a new price target following the e-commerce giant's $11.6 billion acquisition of Globalstar—a move that has already propelled shares over 10% this week and positions Amazon directly against Elon Musk's SpaceX in the race for satellite broadband dominance.

Amazon Price Prediction: Roth Capital Provides New AMZN Target

Roth Capital’s latest price target for Amazon stock is $285. That’s an uplift and return on investment (ROI) of approximately 15% from its current price of $249. Therefore, an investment of $1,000 could turn into $1,150 if the forecast turns out to be accurate. That’s decent returns, as not every asset in the stock market delivers double-digit gains. Globalstar, which was the rival of Elon Musk’s Starlink, now goes all-in on the space business.

In a note to clients, Roth Capital called the acquisition of Globalstar afor large-scale space connectivity deployments. The company’s goal is to reshape space satellite connections by effectively entering the segment. The deal covers Globalstar’s satellite operations, infrastructure, and assets, including its lower-frequency mobile satellite service. Amazon stock is expected to soar as it now enters the terrestrial industry.