Amazon Web Services (AWS), an Amazon.com company, inked a strategic collaboration agreement with DISH Network Corporation. Per the terms of the deal, AWS will act as DISH’s preferred cloud provider and DISH will build its 5G network on AWS.
Furthermore, both companies will jointly work to transform how organizations and customers, including AWS and Amazon (AMZN), order and consume 5G services or create their own private 5G networks, the company said.
Notably, DISH (DISH) plans to deploy its first standalone, cloud-based 5G Open Radio Access Network (O-RAN) in the US, starting with Las Vegas later in 2021.
AWS’s well-established infrastructure and wide range of services will aid DISH in deploying a cloud-native 5G network. It should be noted that the 5G network incorporates O-RAN, the antennas and base stations, which link phones and other wireless devices to the network, and the 5G Core, which directs traffic flow within the network. Additionally, DISH’s fully automated Operation and Business Support Systems (OSS and BSS) will also be enhanced, which will help the company in provisioning and operating its customers’ 5G workloads and monetizing its network. (See Amazon stock analysis on TipRanks)
Through the DISH network on AWS, the process of creating new 5G applications will be simplified. What’s more, developers of both DISH and AWS will be able to create innovative 5G solutions for various industries through leveraging standardized application programming interfaces (APIs), which will connect with data on DISH network attributes.
AWS CEO Andy Jassy said, “DISH’s cloud-native and truly virtualized 5G network is a clear example of how AWS customers can use our proven infrastructure and unparalleled portfolio of services to reinvent industries. This collaboration means DISH and its customers can bring new consumer- and enterprise-centric services to the market as quickly as they’re created to deliver on the promise of 5G. Together, we’re opening the door to new technologies that will transform factories, workplaces, entertainment, and transportation in ways people have only dreamed.”
On April 21, Oppenheimer analyst Jason Helfstein reiterated a Buy rating and increased the price target to $4,200 (24.9% upside potential) from $4,100, as he sees AMZN as the firm’s “best large-cap pick.”
Helfstein said, “We are raising our AWS revenue estimates ahead of 1Q results. Our non-AWS estimates remain unchanged. Post 1Q earnings focus will continue to be on AMZN’s investment plans, as it recorded $11B in one-time COVID-19-related costs in 2020. We expect funds to be redeployed to expand grocery, pharmacy, and advertising.”
The consensus rating is a Strong Buy based on 32 unanimous Buys. The average analyst price target stands at $4,106.60 and implies upside potential of 22.2% to current levels. Shares have gained 42.3% over the past year.
On top of this, Amazon scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.