Amazon Stock Is 14% Off Its High as AWS Battles a Gulf Region Outage

Key Stats for AMZN Stock

• Past week’s performance: Consolidating
• 52-week range: $196 to $287
• Valuation model target price: $382
• Implied upside: 50.5% over 2.3 years

Value your favorite stocks like AMZN with 5 years of analysts’ forecasts using TIKR’s new Valuation Model (It’s free) >>>

A Cloud Outage Meets a Capacity Boom

Amazon (AMZN) stock trades about 14% below its 52-week high of $287. That’s despite the company just posting its fastest AWS growth in 18 quarters. This week’s headline wasn’t about earnings though. AWS confirmed it cannot restore access to its Bahrain cloud region or one UAE availability zone after damage tied to regional conflict, and it’s telling affected customers to rebuild elsewhere.

That’s a sobering admission from a cloud provider whose entire pitch rests on reliability. But it comes against a backdrop of extraordinary growth elsewhere. AWS revenue grew 36.7% year over year last quarter,…