Amazon.com's upstart satellite internet service reached a milestone Thursday, when JetBlue became the first airline to sign up for its in-flight system. Amazon stock topped a buy point in morning trading.
The airline will begin using Project Kuiper, Amazon's low Earth orbit satellite network, in 2027. JetBlue said the Wi-Fi service will be available in certain aircraft and at no cost to passengers.
JetBlue will install Project Kuiper on planes using the airline's Fly-Fi system, providing faster speeds and lower latency. The companies did not disclose terms of the deal.
Project Kuiper is an upstart rival to Starlink, the satellite internet provider operated by Elon Musk's SpaceX. Amazon has more than 100 Kuiper satellites in orbit, having launched its first batch in April. By comparison, Starlink has about 8,200 satellites in orbit and already covers much of the globe.
Amazon plans to begin offering Project Kuiper to consumers late this year, according to the company's website.
In April, Amazon signed an agreement with Airbus to make Project Kuiper available to airline operators. Kuiper's aviation terminal can support download speeds up to 1 gigabit per second on a single device.
Amazon Stock Climbs Past Buy Point
Amazon stock climbed 3.5% Thursday morning, rising above a trendline drawn across the highs over a four-week consolidation. The buy point is around 231. The stock is also forming a flat base with a 236.53 buy point.
Another driver for the stock was completion of a $13 billion fundraising round by Amazon-backed AI startup Anthropic. The offering gives the company a $183 billion valuation. Amazon Web Services provides most of Anthropic's cloud capacity, and it uses Amazon's Trainium and Inferentia chips.
JetBlue shares fell nearly 3% as they met resistance at the 200-day moving average. The stock has a Composite Rating of 24.
JetBlue stock has a 21-day average true range (ATR) of 4.39%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Amazon stock has an ATR of 2.02% and a Composite Rating of 94.
