Amazon.com, Inc.: Buy rating from Jefferies

Google Cloud will now host OpenAI's models, joining Microsoft and Amazon in offering GPT products. This expands access to OpenAI's AI tools for developers and businesses.

Amazon Web Services (AWS) will deploy 3M's Expanded Beam Optical platform in its data centers, creating over 100 new jobs by 2027. 3M (NYSE:MMM) expects to contribute $0.5B to the U.S. economy through this optical connectivity business, focusing on innovation and industry adoption.

Amazon is stockpiling Nvidia GB300 server racks worth billions before having the power capacity to use them. AWS's 'Early Rack Receipt' program involves taking ownership of racks early, leading to negative free cash flow. Amazon projects $220B in capital expenditures this year, focusing on AI infrastructure. The company believes securing hardware now is crucial despite deployment delays.

Amazon plans to invest €16bn in Germany in 2027, focusing on cloud, AI, logistics, and media. This includes €4.8bn for AWS expansion and a new Berlin research facility. The company has invested over €100bn since 2010, with projects in satellite communications and fulfilment centres creating 3,000 new jobs.

Amazon (AMZN) faces delays in deploying $5B worth of NVIDIA server racks due to power shortages at its data centers. The company's P/S ratio is 3.47, above its historical median, indicating potential overvaluation. Amazon's GF Score is 93, showing strong performance relative to peers, but insider activity is mixed.

Amazon's AWS revenue grew 37% YoY to $42.232B, with operating income rising to $16.621B. Companywide capex increased to $53.1B, leading to negative free cash flow. AWS's upfront investments are expected to monetize in 2027-2028. Amazon shares closed at $262.63, down from their August high.