Amazon Doubles Down on AI, Cloud and Space Bets

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 deepening its AI and infrastructure push, a strategy that is weighing on its share price in the short term but still has Wall Street firmly bullish. The stock is down about 9% year-to-date after earnings slightly missed expectations and management outlined plans to spend up to $200 billion on AI and cloud build‑out, yet analysts still rate Amazon a Strong Buy with an average target implying mid‑30% upside.

Investors are watching Amazon Web Services closely, as AWS continues to grow around 24% annually and its in‑house Trainium3 chips have helped build a $10 billion custom‑AI semiconductor business. Wells Fargo recently reiterated an Overweight rating and lifted its price target to $305, calling Amazon a top pick for 2026 on the back of stronger future free cash flow and accelerating cloud demand.

Beyond cloud, Amazon’s logistics footprint is also expanding through partners such as cargo airline 21 Air, which hauls packages for the company and is preparing to add Boeing 777 freighters for international routes. That capacity build‑up positions Amazon to support rising e‑commerce and Prime shipping volumes, reinforcing its moat in delivery even as partners, not Amazon itself, place the aircraft orders.

In space and connectivity, Amazon is exploring bold moves to catch up with SpaceX’s Starlink, including talks to acquire satellite operator Globalstar. A deal would complement the company’s Amazon LEO satellite program and Jeff Bezos’s Blue Origin rockets, potentially giving Amazon an integrated platform for satellite internet and cloud‑from‑orbit, though Apple’s 20% economic stake in Globalstar could complicate any transaction.

Speculation around Amazon’s interest in Globalstar sent GSAT shares sharply higher, underlining how investors view Amazon as a key strategic buyer in the satellite race. If completed, an acquisition could accelerate Amazon’s ability to offer global connectivity services that tie directly into AWS and its broader ecosystem, providing another long‑term growth avenue for shareholders willing to look past today’s elevated capital spending.