Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Amazon is back in the legal spotlight as it fights to protect a major 2024 investment tied to the luxury retail sector. A U.S. bankruptcy judge has rejected Amazon’s initial attempt to block emergency financing for Saks Global, which recently entered Chapter 11. The ruling allows Saks to draw about $400 million in short-term funding and keep operating for now, while it later seeks approval for a much larger $1.75 billion financing package. Amazon, which invested $475 million in preferred equity to support Saks’ $2.65 billion purchase of Neiman Marcus and secure a “Saks on Amazon” partnership, now warns its stake is likely worthless and argues the new debt structure could severely disadvantage unsecured creditors like itself.
Despite this legal setback, Wall Street’s view of Amazon remains highly optimistic. Analysts currently rate Amazon stock a Strong Buy, with 46 Buys and just one Hold over the past three months. The average price target of $294.69 per share implies roughly 23% upside from current levels, suggesting investors still see robust long-term value in Amazon’s core e-commerce and cloud businesses, even as it navigates complex disputes around its strategic investments and retail partnerships.