What Happened? Shares of cloud computing and online retail behemoth Amazon (NASDAQ:AMZN) jumped 3.9% in the afternoon session after the stock's positive momentum continued as the company announced a significant €33.7 billion investment in Spain to expand its data center and cloud infrastructure with a focus on artificial intelligence. This investment added to a previous commitment from 2024 and wa...
What Happened? Shares of cloud computing and online retail behemoth Amazon (NASDAQ:AMZN) jumped 3.9% in the afternoon session after the stock's positive momentum continued as the company announced a significant €33.7 billion investment in Spain to expand its data center and cloud infrastructure with a focus on artificial intelligence. This investment added to a previous commitment from 2024 and was projected to contribute significantly to Spain's GDP through 2035. Further boosting investor confidence, Amazon Web Services (AWS) also pursued a long-term partnership with OpenAI, with plans to invest $50 billion. The company also rolled out a new AI-powered "dynamic canvas" tool to provide customized, interactive dashboards for its online sellers. In addition to its AI initiatives, Amazon launched its 15-minute grocery delivery service, Amazon Now, in Brazil, signaling a high-priority investment in the region. After the initial pop the shares cooled down to $216.54, up 3.8% from previous close. Is now the time to buy Amazon? Access our full analysis report here, it’s free. What Is The Market Telling Us Amazon’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The previous big move we wrote about was 26 days ago when the stock dropped 7.2% on the news that the company announced a massive $200 billion capital spending plan for 2026 and reported mixed fourth-quarter results. The forecast, a more than 50% increase in capital expenditures compared to 2025, spooked investors who were concerned about its impact on near-term profitability and free cash flow. While Amazon's revenue beat expectations and its Amazon Web Services (AWS) segment showed strength, this was overshadowed by an operating profit miss. Adding to the negative sentiment, the company's oper...