CHICAGO - Mondelēz International, Inc. (NASDAQ:MDLZ), a global leader in snacking with a market capitalization of $82 billion and an overall "GOOD" financial health rating according to InvestingPro, has announced a strategic partnership with Amazon (NASDAQ:AMZN) Web Services (AWS), naming the tech giant as its preferred cloud provider to drive digital innovation. The collaboration is set to bolster the snack company's digital transformation by migrating numerous workloads to AWS, including its ERP (Enterprise Resource Planning) system to SAP RISE supported by AWS.
This move is aimed at enhancing Mondelēz's security, agility, and reliability in its operations. The company's Chief Technology Officer and Chief Information Security Officer, Kostas Georgakopoulos, emphasized the partnership's role in accelerating the company's digital overhaul. AWS's capabilities in automation, security, resiliency, and agility are expected to align with Mondelēz's strategic goals. According to InvestingPro analysis, the stock appears undervalued, with analysts maintaining a strong buy consensus.
Rich Geraffo, Vice President of AWS North America, acknowledged the collaboration, noting Mondelēz's vision for cloud technology and AI to drive growth, and expressed pride in AWS's involvement in establishing a foundation for innovation at Mondelēz.
The partnership is also anticipated to improve cost efficiency and advance sustainability efforts, as AWS is recognized for prioritizing renewable energy and operating energy-efficient data centers.
Mondelēz, with 2023 net revenues of approximately $36 billion, continues to lead in the snacking industry with well-known brands such as OREO, RITZ, and CADBURY DAIRY MILK. The company is a member of the S&P 500, Nasdaq 100, and Dow Jones Sustainability Index.
This strategic move underscores Mondelēz's commitment to leveraging advanced technologies to maintain its competitive edge in the fast-moving consumer goods sector. The information regarding this partnership is based on a press release statement from Mondelēz International.
In other recent news, Mondelez (NASDAQ:MDLZ) International has been the subject of significant financial developments. The company has announced a new $9 billion share repurchase program, replacing an existing plan with $2.8 billion remaining. Deutsche Bank (ETR:DBKGn) downgraded Mondelez's stock from Buy to Hold, adjusting the price target to $67 due to concerns over potential acquisitions and the impact of rising cocoa prices. However, Citi reaffirmed its Buy rating and a stock price target of $78, following the announcement of the new share buyback plan.
TD Cowen and BofA Securities have also adjusted their price targets for Mondelez, citing concerns about rising cocoa prices and foreign exchange headwinds, but maintained their Buy ratings. In addition to these financial adjustments, Mondelez appointed Volker Kuhn as Executive Vice President and President of its European operations, effective April 1, 2025.
The company reported robust growth in the third quarter of 2024, with a 5.4% increase in organic net revenue and a significant 28.6% rise in adjusted earnings per share. These recent developments underscore Mondelez's ongoing financial maneuvers and strategic planning.
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