ServiceNow nears deal to acquire Veza for at least $1 bln - The Information
Investing.com - TD Cowen has reiterated its Buy rating and $255.00 price target on Amazon.com (NASDAQ:AMZN), highlighting strong growth potential in the company’s cloud computing division. The company, currently valued at $2.47 trillion, has received positive earnings revisions from 22 analysts for the upcoming period, according to InvestingPro data.
The research firm’s survey of 215 North American IT decision-makers revealed that 41% of companies using generative AI are primarily hosting their solutions on AWS, Amazon’s cloud platform.
Survey respondents indicated they expect to increase their generative AI cloud spending from 12% to 28% of their overall cloud expenditure between 2025 and 2028, supporting TD Cowen’s projection of a 20% compound annual growth rate for AWS revenue from 2025 to 2030.
The firm’s sum-of-the-parts analysis implies an enterprise value of $1.2 trillion for AWS by 2026, justifying Amazon’s increased capital expenditures to build capacity for future generative AI deployment.
According to the survey, 85% of respondents plan to use generative AI tools by 2026, with 75% already implementing them, and approximately 42% of firms expect to allocate 30% or more of their cloud budget to generative AI within three years.
In other recent news, Amazon.com Inc. has been testing General Motors Co.’s BrightDrop electric vans as part of its initiative to deploy 100,000 electric delivery vehicles by 2030. The company is currently evaluating around 12 BrightDrop vans in its fleet, according to an Amazon spokesperson. Additionally, Morgan Stanley has reiterated an Overweight rating for Amazon, emphasizing its potential growth in the fresh grocery market, which is valued at approximately $600 billion. The investment firm suggests that Amazon’s expansion in this sector could significantly boost its U.S. gross merchandise value. Meanwhile, Amazon is also developing augmented-reality glasses, codenamed Jayhawk, intended for both consumers and delivery drivers. These glasses will include features such as microphones, speakers, a camera, and a full-color display in one eye. In Mexico, Amazon faces competition barriers in the e-commerce market, as identified by the country’s anti-trust watchdog, Cofece. The investigation found that sellers on Amazon’s platform encounter challenges due to insufficient information about product visibility and preferential treatment for those using the platform’s logistics services.
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