AWS in Deal with Brazil’s Space Agency – Report

Amazon Web Services (AWS), the cloud computing arm of the e-commerce powerhouse Amazon (AMZN), has entered into a strategic cooperation agreement with Brazil’s Space Agency, according to a Reuters report. 

The deal is focused on the long-term development of Brazil’s space program. As a result, AWS and the space agency will cooperate in areas such as research and development, training, and the creation of a centralized space data repository.

Amazon is expanding in Brazil. In 2020, AWS announced a nearly $195 million investment in data centers in Brazil, according to the report.

The World’s Top Cloud Vendor

Amazon’s AWS ranks as the world’s top cloud computing provider, with a 33% market share in 2021. Microsoft (MSFT) comes in second with a 21% share and Google (GOOGL) ranks third with a 10%.

Amazon reported $62.2 billion in sales from AWS in 2021, up from $45.4 billion in 2020. The cloud business delivered an operating profit of $18.5 billion, compared to $13.5 billion in the previous year.

Analysts’ Take

Bank of America Securities analyst Justin Post recently reiterated a Buy rating on Amazon stock with a price target of $4,450, which suggests 40.73% upside potential. The analyst noted Amazon’s share repurchase program, mentioning that the company recently revealed repurchasing about 500,000 shares for $1.3 billion. Post further notes that $3.7 billion remains under Amazon’s current repurchase authorization.

Consensus among analysts is a Strong Buy based on 32 Buys. The average Amazon price target of $4,192.97 implies 32.60% upside potential to current levels.

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