Amazon.com Inc (NASDAQ: AMZN) recently unveiled plans to invest €10 billion ($10.75 billion) in Germany to capitalize on the increasing demand for cloud and logistics infrastructure. This investment includes €8.8 billion in cloud infrastructure for AWS Europe by 2026, creating 4,000 jobs in three new logistics centers. Amazon is also considering investing in data centers in Italy. German Chancellor Olaf Scholz welcomed Amazon’s investment, highlighting the positive impact on the country’s economy.
Overall, Amazon’s investments are expected to contribute €15.4 billion to Germany’s GDP. While Amazon stock has performed well in 2024, it does not currently pay dividends. JPMorgan analysts maintain an optimistic outlook on Amazon, with an Overweight rating and a $240 price target, anticipating a 30% upside. They believe Amazon could surpass Walmart as the largest US retailer and predict long-term e-commerce penetration to exceed 40%.
Amazon’s strong financial results for the first quarter further support JPMorgan’s bullish view. CEO Andy Jassy noted the reaccelerating growth rate of AWS, which now has $100 billion in annual revenue. Despite expectations of sales between $144 billion and $149 billion in the current quarter, analysts anticipated $150 billion. Investors interested in trading signals for cryptocurrency, forex, and stocks can join Invezz™ Signals for professional guidance and consistent results.
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https://invezz.com/news/2024/06/19/amazon-commits-e10-billion-investment-in-germany/
