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, the global leader in online retail, is making significant strides in the tech sector, particularly with its Amazon Web Services (AWS) and artificial intelligence (AI) initiatives. Despite its stock underperforming the NASDAQ this year, Wells Fargo analyst Ken Gawrelski has upgraded Amazon’s rating to ‘Overweight’ with a price target of $280, citing the potential for AWS to accelerate growth. This optimism is fueled by Amazon’s Project Rainier, a collaboration with AI startup Anthropic, aimed at enhancing AWS’s computing capacity. The project is expected to significantly boost AWS’s revenue growth in the coming years, potentially reversing the stock’s underperformance.
In addition to its tech advancements, Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations of misleading users into unwanted Prime memberships. This settlement includes a $1 billion civil penalty and $1.5 billion in refunds to affected customers. Despite denying wrongdoing, Amazon has committed to improving transparency in its Prime sign-up process and making cancellations easier. The company faces ongoing legal challenges, including a major antitrust case set for trial in 2027, which could further impact its market position.