AMZN Stock Rebounds to $270 as Midterms Help Amazon Global Outlook

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.

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.

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.

Amazon (AMZN) shares rose 4.5% to $261.87 in premarket trading. The company maintained its $220B capex forecast for 2026. Q3 revenue was $201.9B, with AWS revenue up 39.3%. Operating cash flow was $168.3B, but free cash flow was -$42.4B due to infrastructure spending.

Amazon (AMZN) rose 7.5% on potential benefits from stricter data-center regulations, while Vistra (VST) fell 13% due to regulatory concerns. Amazon's AWS division reported $46B in Q3 revenue, up 39% YoY, with a $220B investment plan. Vistra faces regulatory risks but has expanded its generation capacity. Both stocks have Strong Buy ratings, with price targets of $324.88 (AMZN) and $204.24 (VST).

The Treasury Borrowing Advisory Committee stated that circular financing in AI is intentional, with tech capital spending expected to reach $1 trillion this year and $1.7 trillion by 2027. The cost of insuring debt for companies like Amazon, Oracle, and CoreWeave has increased significantly, with Oracle's insurance costs surpassing 2008 financial crisis levels.