Amazon.com Inc (NASDAQ: AMZN) just announced plans of investing €10 billion ($10.75 billion) in Germany to tap on increasing demand for cloud and logistic infrastructure.
Shares of the tech titan are currently up well over 20% versus the start of 2024.
Details of Amazon’s announced investment in Germany
Amazon Web Services will invest €8.8 billion to “continue to build, maintain, and operate its cloud infrastructure for AWS Europe” by 2026.
The multinational has been committed to expanding its footprint in cloud infrastructure in Europe. Investment it announced today will create some 4,000 jobs at three new fulfilment centres, as per a press release on Wednesday.
In total, AMZN now plans on investing a whopping €17.8 billion in Germany. Amazon stock is down over 3.0% versus its year-to-date high at writing.
Here’s what AMZN investment means for Germany
Note that Amazon was recently reported considering investing billions in data centres in Italy as well.
Olaf Scholz – the German Chancellor praised Amazon’s plans of investing in the country that arrives at a time when Berlin is struggling with under-investment and energy costs driven economic downturn.
But the AMZN announcement indicates Germany remains “an attractive business location”. “As the government, we are working on precisely this: strengthening our competitiveness”, he added.
All in all, investments from the tech titan are expected to contribute some €15.4 billion to the gross domestic product (GDP) of Germany through 2026, as per the press release.
Amazon shares have been fairly exciting for investors this year but they do not pay a dividend at writing.
Is Amazon stock worth owning in June 2024?
Amazon stock has outperformed since the start of this year but JPMorgan analysts continue to see much more upside in shares of the Seattle-headquartered firm.
Their overweight rating is coupled with a price target of $240 which translates to about a 30% upside from here as AMZN could decrown Walmart as the largest U.S. retailer by the end of this year.
eCommerce penetration, they’re convinced, will exceed 40% over the long term.
JPM’s bullish view came more than a month after Amazon.com Inc reported its financial results for the first quarter that topped Street estimates. Andy Jassy – the chief executive of AMZN said at the time:
The combination of companies renewing their infrastructure modernisation efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate (now at a $100 billion annual revenue run rate.
Still, Amazon guided for sales of $144 billion to $149 billion in the current quarter. Analysts, in comparison, were at $150 billion.
The post Amazon just committed to investing €10 billion in Germany: find out more appeared first on Invezz