Amazon Launches European Sovereign Cloud, Investing €7.8 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19h ago
0mins
Source: CNBC
- Sovereign Cloud Launch: Amazon has launched the AWS European Sovereign Cloud in Brandenburg, Germany, aimed at addressing the EU's increasingly stringent data privacy regulations, thereby enhancing its competitive position in the European market.
- Investment Plan: Amazon plans to invest €7.8 billion (approximately $9.1 billion) in the AWS European Sovereign Cloud by 2040, which will not only enhance infrastructure capabilities but also meet the EU's data localization requirements.
- Management Structure Adjustment: A new parent company for the sovereign cloud will be locally controlled by EU citizens, with Stéphane Israël as CEO, ensuring services comply with local regulations and thereby enhancing customer trust.
- Market Share Challenge: Despite the launch of the sovereign cloud, AWS faces competition from Microsoft and Google, which together hold 70% of the European cloud computing market, necessitating Amazon to innovate and ensure compliance to capture market share.
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 294.71 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.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 236.650
Low
250.00
Averages
294.71
High
340.00
Current: 236.650
Low
250.00
Averages
294.71
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.
