AMZN Stock Rebounds to $265 as Midterms Improve Amazon’s Global Outlook

Amazon holds $6.2B in convertible notes for Anthropic, valued at $146.2B as of September 2026. The notes could convert into 184M shares of nonvoting preferred stock. Amazon also has $92.5B in Anthropic preferred stock. Anthropic committed to spending $100B on AWS over 10 years.

A federal judge certified a class action lawsuit against Amazon, alleging its pricing policies artificially inflated prices on eBay and Walmart. The case, filed in 2020, claims Amazon's anti-discounting policies discouraged sellers from offering lower prices on competing platforms. The certified class includes U.S. buyers who made qualifying purchases since 2016. Amazon disputes the claims, arguing its policies ensure competitive offers. The case is Frame-Wilson et al. v. Amazon.com Inc.

Amazon Web Services (AWS) is poised to renew a £1.05bn ($1.42bn) contract with the UK Home Office for public cloud services, running from 2027 to 2029 with a possible extension. The contract, valued at £881.6m ($1.189bn) excluding VAT, marks a significant increase in annual payments, according to BidSkim's analysis. AWS has secured 75% of public sector cloud spending since 2022, with £1.22bn ($1.65bn) spent on its services.

Alphabet, Amazon, and Microsoft shares rose 4.1%, 7.1%, and 7% respectively, after Democrats won control of Congress, potentially leading to stricter data center regulations. Investors expect these tech giants to benefit from reduced competition and lower capital expenditures, boosting profits and cash flow. Amazon and Alphabet maintained high capex forecasts, while Microsoft reduced its guidance.

BMO Capital Markets named Amazon (AMZN) its top e-commerce pick, raising its price target to $390. Amazon's Q3 2026 results showed mixed performance, with AWS revenue up 39% YoY to $46B, while advertising and retail growth slowed. Management expects AWS growth to exceed 40% in 2027-2028. BMO adjusted its sales and capex forecasts for 2026-2028.

US tech giants' shares surged on Wednesday after Democrats' midterm election sweep, with investors anticipating potential curbs on data-center construction. Amazon, Meta, Alphabet, Microsoft, and Apple gained between 2% and 7.4%, adding over $750 billion in combined market value. Democrats' opposition to data centers may slow construction, benefiting existing tech giants. Smaller players like Applied Digital and Iren saw declines on concerns about their expansion plans.