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Sunday, June 11, 2023

Amazon Lands Cloud Deal with Swisscom

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Amazon (AMZN) has secured a cloud deal with Swisscom (SCMWY).  The leading telecom and IT services company in Switzerland has selected Amazon Web Services (AWS) as its preferred cloud computing provider. AWS is the cloud unit of e-commerce powerhouse Amazon.

The broad arrangement will see Swisscom use the AWS infrastructure to power its 5G network as it takes a cloud-first strategy. The operator will also leverage AWS capabilities to accelerate innovation and increase operational efficiency. Swisscom counts on AWS to enable it to meet the needs of its customers and unlock new growth potential.

“The telecoms industry is turning to AWS to build more flexible, agile, and cost-effective networks in the cloud, capable of delivering reliable services at any scale while continuously improving the customer experience,” said Adolfo Hernandez, AWS Vice President of Telco Sales.

“We expect 5G to open the door for a host of specialized services. Having AWS by our side…will help us innovate and grow at a rapid pace,” commented Christoph Aeschlimann, Swisscom’s CTIO.

Amazon plans to open a new AWS region in Zurich next year. Swisscom intends to use it to offer its enterprise customers greater choice in processing and storing data domestically. (See Amazon stock chart on TipRanks).

Yesterday, Jefferies analyst Brent Thill reaffirmed a Buy rating on Amazon stock with a price target of $4,200. Thill’s price target implies 21.96% upside potential.

The analyst reiterated the bullish view on Amazon following a call with a logistics expert. Thill highlighted several key takeaways from the call, including Amazon being able to expand its fulfillment capacity by about 50% in the next 18-24 months.

Additionally, the analyst noted that in-sourcing last-mile deliveries provide Amazon a competitive advantage and will protect it from fourth-quarter shipping surcharges.

Consensus among analysts is a Strong Buy based on 33 Buys. The average Amazon price target of $4,281.25 implies 24.31% upside potential to current levels.

AMZN scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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The post Amazon Lands Cloud Deal with Swisscom appeared first on TipRanks Financial Blog.

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