Europe's Growing Dependence on U.S. Tech Providers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy AMZN?
Source: Newsfilter
- Market Dominance: According to Synergy Research Group, U.S. companies are projected to control over 70% of the European cloud market by 2025, while European firms are expected to hold less than 15%, indicating the persistent dominance of American tech giants in key markets.
- Data Privacy Risks: The reliance on U.S. tech firms raises concerns over data privacy due to the Cloud Act, which allows U.S. law enforcement to request user data from American companies regardless of where it is stored, even if in Europe.
- Competitive Challenges: With SAP and Deutsche Telekom holding only 2% of the European cloud market, U.S. companies like Amazon, Microsoft, and Google maintain a competitive edge through continuous investment and brand recognition, putting European firms at a disadvantage.
- Calls for Technological Sovereignty: As geopolitical tensions escalate, European governments are increasingly seeking digital autonomy, with SAP CEO Christian Klein noting that political leaders are re-evaluating technology to ensure sovereignty over data and software.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
Current: 204.080
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.
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- Service Expansion: Amazon Pharmacy plans to expand its same-day prescription delivery service to 4,500 cities and towns across the U.S. by the end of 2026, adding nearly 2,000 new communities, significantly enhancing the coverage and convenience of medication delivery.
- New Market Penetration: This expansion will include newly served states such as Idaho and Massachusetts, aiming to provide fast and reliable medication delivery to more customers, addressing the needs of patients in diverse regions.
- Enhanced Patient Experience: John Love, Vice President of Amazon Pharmacy, stated that by combining pharmacy expertise with logistics networks, they aim to remove critical barriers for patients in accessing medications, thereby accelerating the start of treatment and improving overall medication experiences.
- Standard for Digital Pharmacy: Through this expansion, Amazon Pharmacy sets a new standard, emphasizing that patients should not have to choose between speed, cost, and convenience, thereby promoting the widespread adoption of digital pharmacy services.
See More
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- Sustained Growth: Despite its massive size, Amazon continues to report double-digit sales growth, with online store sales up 10% year-over-year, advertising sales up 23%, and AWS sales up 24%, showcasing the strength of its diversified business model.
- Strategic Shift: Amazon has closed all its Amazon Go and Amazon Fresh stores while planning a new big-box store format that combines retail and distribution, aiming to optimize its physical store presence to meet market demands.
- Competitive Outlook: Walmart is set to report its fiscal fourth-quarter results next week, and to catch up with Amazon, it would need an additional $14 billion in revenue; given its recent sales growth, the competitive outlook appears bleak, further solidifying Amazon's market position.
See More
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- Diversified Investment Strategy: Amazon is investing not only in artificial intelligence but also planning to launch a new type of big-box store that combines retail and distribution, aiming to further expand market share and enhance operational efficiency.
- Strong Performance Across Segments: Online store sales grew by 10% year-over-year, advertising sales increased by 23%, and AWS sales rose by 24%, indicating robust growth across multiple sectors, which strengthens Amazon's market leadership.
- Changing Market Competition Landscape: Walmart would need an additional $14 billion in sales growth to surpass Amazon, highlighting that Amazon is likely to maintain its leading position in future market competition, further solidifying its market advantage.
See More
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- Market Performance Analysis: Walmart's stock has surged nearly 170% over the past five years, significantly outperforming the S&P 500, indicating success in e-commerce and AI applications, yet analysts remain cautious about its future growth prospects.
- Financial Overview: In the first nine months of 2025, Walmart reported nearly $573 billion in revenue with a growth rate of 4%, and while net income approached $18 billion, up nearly 25%, most of this gain stemmed from rising equity investment values.
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- Stock Price Surge: As of October 2025, shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have skyrocketed by 670%, 6,217%, 3,912%, and 2,798% respectively over the past 12 months, reflecting strong market confidence in quantum computing.
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