Amazon Launches Alexa+ Site and Secures $38 Billion Cloud Deal with OpenAI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Should l Buy AMZN?
Source: Fool
- New Product Launch: Amazon has launched the Alexa+ website, currently available to a limited number of early access users, aiming to compete with OpenAI's ChatGPT and Google's Gemini, highlighting Amazon's commitment to catching up in the AI space.
- Major Partnership Agreement: Amazon secured a $38 billion deal with OpenAI to provide AWS computing power over the next seven years, transforming OpenAI into a significant AWS customer and potentially helping Amazon regain market share in cloud computing.
- Market Share Dynamics: As of Q3 2025, AWS holds a 29% share of the cloud computing market, still ahead of Microsoft Azure's 20% and Google Cloud's 13%, but down from 34% in 2022, indicating competitive pressures for Amazon.
- Potential Investment Opportunity: Amazon is in talks to invest at least $10 billion in OpenAI, which could enhance Amazon's capabilities in AI technology and position it as a peer to Alphabet and Microsoft in the AI processor space.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 239.300
Low
250.00
Averages
294.69
High
340.00
Current: 239.300
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Melania Documentary Surpasses Opening Box Office Expectations
- Opening Weekend Performance: The Melania documentary grossed approximately $7 million in its opening weekend, exceeding expectations of $2 to $5 million, marking one of the best performances for a documentary in decades and highlighting its appeal among specific audience segments.
- Audience Composition Analysis: With 72% of viewers being female and a significant portion aged 55 and older, particularly in Republican states and small towns, the film's strong resonance within these demographics is evident, suggesting targeted marketing effectiveness.
- Marketing Investment: Amazon invested $35 million in marketing the film, including ads on social media platform X and prime slots during NFL playoff games, indicating a strong commitment to ensuring the film's success in a competitive landscape.
- Initial International Box Office Results: The film's international performance has been lackluster, grossing $44,960 in the UK and $7,696 in Italy, which may limit its global appeal and impact Amazon's overall revenue expectations from the project.
See More
Amazon Delivers Over 13 Billion Items in 2025 at Record Speeds
- Delivery Capability Boost: Amazon delivered over 13 billion items globally in 2025, with more than 8 billion reaching U.S. Prime members the same or next day, marking over a 30% increase in U.S. same or next-day deliveries compared to the previous year, showcasing a significant enhancement in delivery capabilities.
- Rural Network Expansion: The company's strategic investment of $4 billion in its rural delivery network has significantly expanded the geographic reach of Same-Day and Next-Day Delivery, making everyday essentials more accessible to rural customers and nearly doubling the monthly Same-Day customer count in these areas in 2025.
- AI-Driven Optimization: Amazon's use of cutting-edge AI models to optimize product stocking across its fulfillment network has enabled faster deliveries and reduced shipping distances, thereby enhancing overall operational efficiency and customer satisfaction.
- Market Performance: According to Benzinga Pro data, Amazon shares rose 0.84% to $245.00 during premarket trading on Tuesday, reflecting positive market sentiment towards its enhanced delivery capabilities and strategic investments.
See More
Warren Warns of Risks from ESPN's NFL Asset Acquisition
- Acquisition Impact: The approval of ESPN's acquisition of NFL media assets is expected to lead to higher costs and fewer viewing options for NFL fans, with Senator Warren strongly opposing this move, arguing it further solidifies ESPN's dominance in the sports streaming market.
- Programming Expansion: With this acquisition, ESPN will broadcast 28 regular-season games annually, marking its highest total ever, while integrating parts of NFL Network into its direct-to-consumer service, which is anticipated to enhance user experience and market competitiveness.
- NFL's Control: Despite ESPN's acquisition of certain NFL Network assets, the NFL will continue to operate NFL+ and NFL.com, retaining production control over RedZone, thereby ensuring its influence amid shifting media landscapes.
- Disney Earnings Highlights: Disney reported adjusted earnings of $1.63 per share, exceeding analyst expectations, with revenue climbing 5% year-over-year to $25.98 billion, indicating a positive impact of the ESPN acquisition on its overall business.
See More
Nvidia Faces Internal Competition Risks
- Market Share Growth: Nvidia's market cap has surged by nearly $4.3 trillion since the beginning of 2023, underscoring the critical role its hardware plays in AI data centers, despite competitive pressures from AMD and Broadcom.
- Maintaining Competitive Edge: CEO Jensen Huang is launching a new chip each year, with the Vera Rubin GPU expected to succeed the Blackwell Ultra later this year, ensuring the company's leadership in AI, even as competitors struggle to match its computing power.
- Internal Competition Threat: Major customers like Meta, Microsoft, and Amazon are developing their own AI chips, which could undermine Nvidia's pricing power and gross margins, impacting future GPU sales.
- Shifting Market Dynamics: As customer-developed chips become more prevalent, demand for Nvidia's GPUs may be affected, particularly if future data center upgrade cycles are delayed, potentially leading to decreased demand for next-generation GPUs.
See More
AI Drives Nvidia's Market Share Surge
- Market Share Advantage: Nvidia's market capitalization has surged by nearly $4.3 trillion since the beginning of 2023, indicating its dominant position in AI data centers and further solidifying its competitive edge in a rapidly growing market.
- Accelerated Innovation: CEO Jensen Huang is launching a new advanced chip each year, with the Vera Rubin GPU expected to succeed the Blackwell Ultra in the latter half of this year, ensuring the company's sustained technological leadership and enhancing its market competitiveness.
- Increased Competitive Pressure: Although Broadcom and AMD are performing well in AI data centers, Nvidia's biggest competitive risk comes from internal chip development by its major customers, which could weaken its pricing power and gross margins.
- Future Upgrade Cycle Risks: As members of the
See More
Investors Underestimating Shift Away from U.S. Assets, Warns Tuttle
- Market Shift Warning: Matthew Tuttle, CEO of Tuttle Capital Management, warns that investors may be underestimating the shift away from U.S. assets, particularly large tech firms, as Europe and other regions reduce dependence on American platforms and policies.
- Digital Sovereignty Push: Tuttle highlights a significant move towards digital sovereignty in Europe, ensuring that core systems and communications cannot be easily disabled if relations with the U.S. deteriorate, which will impact future technology procurement and investment decisions.
- Beneficiary Companies: He identifies several European companies, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini, that could benefit from this shift, indicating a market tilt towards local technology solutions.
- Strained U.S.-EU Relations: Relations between the U.S. and EU have further strained after President Trump threatened tariffs on the EU for not supporting his Greenland acquisition bid, which may intensify scrutiny on U.S. tech companies and affect investor confidence.
See More
Melania Documentary Surpasses Opening Box Office Expectations
- Opening Weekend Performance: The Melania documentary grossed approximately $7 million in its opening weekend, exceeding expectations of $2 to $5 million, marking one of the best performances for a documentary in decades and highlighting its appeal among specific audience segments.
- Audience Composition Analysis: With 72% of viewers being female and a significant portion aged 55 and older, particularly in Republican states and small towns, the film's strong resonance within these demographics is evident, suggesting targeted marketing effectiveness.
- Marketing Investment: Amazon invested $35 million in marketing the film, including ads on social media platform X and prime slots during NFL playoff games, indicating a strong commitment to ensuring the film's success in a competitive landscape.
- Initial International Box Office Results: The film's international performance has been lackluster, grossing $44,960 in the UK and $7,696 in Italy, which may limit its global appeal and impact Amazon's overall revenue expectations from the project.
See More
Amazon Delivers Over 13 Billion Items in 2025 at Record Speeds
- Delivery Capability Boost: Amazon delivered over 13 billion items globally in 2025, with more than 8 billion reaching U.S. Prime members the same or next day, marking over a 30% increase in U.S. same or next-day deliveries compared to the previous year, showcasing a significant enhancement in delivery capabilities.
- Rural Network Expansion: The company's strategic investment of $4 billion in its rural delivery network has significantly expanded the geographic reach of Same-Day and Next-Day Delivery, making everyday essentials more accessible to rural customers and nearly doubling the monthly Same-Day customer count in these areas in 2025.
- AI-Driven Optimization: Amazon's use of cutting-edge AI models to optimize product stocking across its fulfillment network has enabled faster deliveries and reduced shipping distances, thereby enhancing overall operational efficiency and customer satisfaction.
- Market Performance: According to Benzinga Pro data, Amazon shares rose 0.84% to $245.00 during premarket trading on Tuesday, reflecting positive market sentiment towards its enhanced delivery capabilities and strategic investments.
See More
Warren Warns of Risks from ESPN's NFL Asset Acquisition
- Acquisition Impact: The approval of ESPN's acquisition of NFL media assets is expected to lead to higher costs and fewer viewing options for NFL fans, with Senator Warren strongly opposing this move, arguing it further solidifies ESPN's dominance in the sports streaming market.
- Programming Expansion: With this acquisition, ESPN will broadcast 28 regular-season games annually, marking its highest total ever, while integrating parts of NFL Network into its direct-to-consumer service, which is anticipated to enhance user experience and market competitiveness.
- NFL's Control: Despite ESPN's acquisition of certain NFL Network assets, the NFL will continue to operate NFL+ and NFL.com, retaining production control over RedZone, thereby ensuring its influence amid shifting media landscapes.
- Disney Earnings Highlights: Disney reported adjusted earnings of $1.63 per share, exceeding analyst expectations, with revenue climbing 5% year-over-year to $25.98 billion, indicating a positive impact of the ESPN acquisition on its overall business.
See More
Nvidia Faces Internal Competition Risks
- Market Share Growth: Nvidia's market cap has surged by nearly $4.3 trillion since the beginning of 2023, underscoring the critical role its hardware plays in AI data centers, despite competitive pressures from AMD and Broadcom.
- Maintaining Competitive Edge: CEO Jensen Huang is launching a new chip each year, with the Vera Rubin GPU expected to succeed the Blackwell Ultra later this year, ensuring the company's leadership in AI, even as competitors struggle to match its computing power.
- Internal Competition Threat: Major customers like Meta, Microsoft, and Amazon are developing their own AI chips, which could undermine Nvidia's pricing power and gross margins, impacting future GPU sales.
- Shifting Market Dynamics: As customer-developed chips become more prevalent, demand for Nvidia's GPUs may be affected, particularly if future data center upgrade cycles are delayed, potentially leading to decreased demand for next-generation GPUs.
See More
AI Drives Nvidia's Market Share Surge
- Market Share Advantage: Nvidia's market capitalization has surged by nearly $4.3 trillion since the beginning of 2023, indicating its dominant position in AI data centers and further solidifying its competitive edge in a rapidly growing market.
- Accelerated Innovation: CEO Jensen Huang is launching a new advanced chip each year, with the Vera Rubin GPU expected to succeed the Blackwell Ultra in the latter half of this year, ensuring the company's sustained technological leadership and enhancing its market competitiveness.
- Increased Competitive Pressure: Although Broadcom and AMD are performing well in AI data centers, Nvidia's biggest competitive risk comes from internal chip development by its major customers, which could weaken its pricing power and gross margins.
- Future Upgrade Cycle Risks: As members of the
See More
Investors Underestimating Shift Away from U.S. Assets, Warns Tuttle
- Market Shift Warning: Matthew Tuttle, CEO of Tuttle Capital Management, warns that investors may be underestimating the shift away from U.S. assets, particularly large tech firms, as Europe and other regions reduce dependence on American platforms and policies.
- Digital Sovereignty Push: Tuttle highlights a significant move towards digital sovereignty in Europe, ensuring that core systems and communications cannot be easily disabled if relations with the U.S. deteriorate, which will impact future technology procurement and investment decisions.
- Beneficiary Companies: He identifies several European companies, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini, that could benefit from this shift, indicating a market tilt towards local technology solutions.
- Strained U.S.-EU Relations: Relations between the U.S. and EU have further strained after President Trump threatened tariffs on the EU for not supporting his Greenland acquisition bid, which may intensify scrutiny on U.S. tech companies and affect investor confidence.
See More
