Amazon announced on Dec. 15 that is has signed a multi-year agreement with Twitter to support the real-time delivery of millions of daily tweets via its cloud arm Amazon Web Services (AWS). Twitter shares gained 4.3%.
Twitter will tap Amazon’s (AMZN) global cloud platform AWS and use its infrastructure and portfolio of services to power the real-time, global traffic of its users.
The new collaboration builds on a decade-long partnership, where AWS continues to provide Twitter (TWTR) with storage, compute, database, and content delivery services for its delivery of images, videos, and ad content.
“The collaboration with AWS will improve performance for people who use Twitter by enabling us to serve Tweets from data centers closer to our customers at the same time as we leverage the Arm-based architecture of AWS Graviton2 instances. In addition to helping us scale our infrastructure, this work with AWS enables us to ship features faster as we apply AWS’s diverse and growing portfolio of services.” said Twitter’s Chief Technology Officer Parag Agrawal, .
Amazon shares have gained 71.3% year-to-date and are trading at a discount of 11% to its 52-week high. (See AMZN’s stock analysis on TipRanks)
This week, Cowen & Co. analyst John Blackledge raised the stock’s price target from $4,150 to $4,350 and reiterated a Buy rating.
Blackledge expects robust and continued revenue growth in FY21 along with margin expansion driven by AMZN’s evaluation of its Covid costs and ramp-up of its warehouse square footage by 50%.
From the rest of the Street, the stock scores a Strong Buy consensus based on 36 Buys and 1 Hold. The average price target of $3,825.60 implies upside potential of 21% to current levels.
Related News:
Palantir vs Verint: Which SaaS Stock Is A Better Pick?
Cardtronics Agrees To $2.3B Buyout Offer; Street Says Hold
Vroom Nabs CarStory For $120M; Shares Climb 5%
