Should SpaceX Investors Be Worried About Competition From Amazon?
By newsfeedback@fool.com (Prosper Junior Bakiny)
Read original article on Motley FoolAmazon (NASDAQ:AMZN) dominates several markets in which it competes. It has the leading market share in the U.S. e-commerce industry and the global cloud computing space. It is also a notable player in video and music streaming, as well as digital advertising. Given Amazon's track record, nobody wants to compete with the company as it can be a formidable opponent. That's why Space Exploration Technologies (NASDAQ:SPCX) should at least acknowledge Amazon's push into some of the markets where it dominates. Should SpaceX investors be worried?
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SpaceX's most profitable business right now is providing internet connectivity via a constellation of Low Earth Orbit (LEO) satellites. In the second quarter, the rocket company's connectivity segment recorded $4.3 billion in revenue (more than its two other businesses combined), up almost 66% from the year-ago period. And this unit had an operating income of $1.7 billion, up 79% year over year, while SpaceX's two other segments reported operating losses.
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