Another Amazon (AMZN) Data Center Is Hit by an Iran Drone Strike

Multiple media reports say that another Amazon (AMZN) data center in the Middle East has been hit by a drone strike from Iran.

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Reports say that Iran struck an Amazon Web Services (AWS) facility in Bahrain, temporarily knocking it out of service. AWS is Amazon’s lucrative cloud-computing unit. Iran had previously attacked Amazon data centers across the Middle East over the past month.

Previous strikes on Amazon data centers in the Middle East caused outages to a number of apps and digital services in the United Arab Emirates (UAE). The latest attack on Amazon’s infrastructure marks Tehran’s first direct hit on a U.S. technology giant since the Iranian regime on March 31 labeled 18 firms legitimate military targets.

Targeting U.S. Tech Companies

Iran’s Islamic Revolutionary Guard has threatened attacks on U.S. technology companies with operations in the Middle East, including Nvidia (NVDA) and Microsoft (MSFT). With the Amazon attack, Tehran is making good on its threat to begin attacks on U.S. technology companies starting on April 1.

Amazon and other tech firms are vulnerable as they have dramatically expanded their presence in the Middle East in recent years, specifically around artificial intelligence (AI) infrastructure due to cheap energy costs and the availability of land. The latest attack on Amazon comes amid hopes for a ceasefire in the Iran war.

Is AMZN Stock a Buy?

AMZN stock has a consensus Strong Buy rating among 43 Wall Street analysts. That rating is based on 40 Buy and three Hold recommendations issued in the last three months. The average AMZN price target of $279.88 implies 32.95% upside from current levels.