Amazon’s (NASDAQ:AMZN) cloud computing unit, Amazon Web Services, or AWS, is in talks to invest billions of euros in Italy to strengthen its presence in the country, Reuters reported. The move could involve either expanding its existing data center facility or building a new one.
AWS established its presence in Italy in 2020 as part of its plan to invest 2 billion euros ($2.2 billion) by 2029. Since then, it has grabbed high-profile customers, including luxury sports car manufacturer Ferrari (RACE) and European insurance giant Assicurazioni Generali (ARZGY).
It is worth mentioning that AMZN is significantly expanding its operations in Europe. Earlier in May, the company announced investments of $7.8 billion to bolster its cloud infrastructure and services in Germany and a further $17.02 billion in Spain. Separately, it disclosed plans to invest $8.87 billion in Singapore, pointing to its commitment to global expansion.
Analysts Are Bullish about AWS
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bullish on AMZN believe that AWS remains the most valuable business for the company and a major contributor to Amazon’s bottom line. It is worth mentioning that AWS generated revenues of $25 billion in Q1, an increase of 17% year-over-year.
Best Analyst Covering AMZN
Interestingly, investors considering AMZN stock could follow Loop Capital Markets analyst Rob Sanderson. He is the best analyst covering the stock (in a one-year timeframe). He boasts an average return of 33.07% per rating and a 91% success rate.
On May 6, Sanderson, an analyst ranked among the top 1% of Street stock experts, reiterated his Buy rating on the stock, with a price target of $225, suggesting a 24.5% upside potential. (To watch Sanderson’s track record, click here.)
Is Amazon a Buy, Hold, or Sell?
Overall, Wall Street is optimistic about the stock. AMZN has a Strong Buy consensus rating based on 42 unanimous Buy recommendations. After a 19% rise in its share price so far in 2024, the analysts’ average price target on Amazon stock of $220.60 suggests a further upside of 22.05%.
