Amazon is Europe’s largest corporate buyer of renewable energy, with a capacity of more than 2.5GW. This follows the e-commerce giant investing in nine new renewable energy projects spanning across Canada, the US, Spain, Sweden, and the UK.
The latest investment brings the total number of renewable energy projects under the company’s portfolio to 206. Amazon (AMZN) has invested in 71 utility-scale wind and solar projects in addition to 135 solar rooftops worldwide.
Amazon is increasingly investing in renewable energy as it looks to reduce its carbon footprint. Renewable energy generated from these projects supplies the much-needed energy for powering the tech giant’s fulfillment centers, Whole Foods Market stores, and the company’s massive data centers. Some of the energy is also being used by millions of Amazon Web Services customers.
Increased investments should allow Amazon to meet its commitment to produce sufficient clean energy equivalent to the electricity used by all consumer Echo devices. The company has set out on an ambitious plan to have all its operations powered by clean energy by 2025.
“Amazon continues to play a key role leading the corporate transition to renewable power worldwide and demonstrating that ambitious renewable targets are both achievable and widely beneficial,” said Gregory Wetstone, President, and CEO of the American Council on Renewable Energy (ACORE)
Amazon shares are up 3.5% year to date after a 76% pop in 2020. (See AMZN stock analysis).
While Amazon leads the fray on renewable energy adoption, it is also a force to be reckoned with when it comes to smart speakers. According to Robert W. Baird’s equity research analyst Colin Sebastian, with smart speaker adoption rates very healthy, the company remains well-positioned to generate significant value.
According to the analyst, Amazon remains undervalued at current levels.
“As a reminder, our analysis of Amazon’s “quasi subscription” model suggested shares remain undervalued, with a multi-year pathway to $5,000 using a subscription-valuation framework,” Sebastian wrote in a research note.
Likewise, the analyst has a Buy rating on Amazon with a $4,000 price target implying 18.6% upside potential to current levels.
Amazon stock is a Strong Buy according to Wall Street consensus estimates based on 32 unanimous Buys. The average analyst price target of $4,103.27 implies 21.7% upside potential to current levels.
Amazon scores a strong 9 out of 10 on the TipRanks’ Smart Score rating system, implying that it is well-positioned to outperform the overall market.