American technology and business giant Amazon.com Inc. (NASDAQ-AMZN) announced at the beginning of Friday 19.l.2024 that it intends to gradually expand its investments in Japan through its AWS (Amazon Web Services) division, when it will expand the cloud computing infrastructure in the Japanese capitals of Tokyo and Osaka by 2027 in the total planned investment volume of 2.26 trillion Japanese yen (Y/Y), which corresponds to an amount of 15.24 billion American dollars (USD) according to the current exchange rate. This investment is thus intended to meet expanding customer demand, the company said in a statement.
Amazon.com, Inc. provides a range of products and services to customers. Products offered through its stores include goods and content it has purchased for resale and products offered by third-party sellers. It makes and sells electronic devices, including Kindle, Fire tablets, Fire TV, Echo and Ring, and develops and produces media content. It also offers subscription services such as Amazon Prime, a membership program. Its segments include North America, International and Amazon Web Services (AWS). The AWS segment consists of global sales of compute, storage, database and other services to startups, enterprises, government agencies and academic institutions. It provides advertising services to vendors, resellers, publishers, authors and others through programs such as sponsored ads, display and video advertising. Customers access its offerings through websites, mobile apps, Alexa, devices, streaming and physical visits to its stores. According to brokerage analysts and investment bank financial strategists, the stock market will also react to this fact of the company’s expansion with a significant investment in Japan.
During yesterday’s trading day, Thursday 01/18/2024, NASDAQ-AMZN stock closed the trading day at $153.50 per share in prime trading hours and added another 0.08% of its price in the after market to at $153.62 per share. This current price thus represents a total annual growth of +1.03% of its price over the last 52 weeks. According to analysts, the shares of NASDAQ-AMZN have made up for their losses from previous periods, and even at a time when the strengthening exchange value of the American dollar (USD) reduces the demand for shares in the US stock market, shares of the company Amazon.com (NASDAQ-AMZN), according to financial strategists of the stock market, show a possible prediction of the continued growth of its price. The price of the NASDAQ-AMZN share indicating its continued growth, according to the communication of economic correspondents in connection with stock market analysts, was reached in a situation where the exchange value of the American dollar (USD) shows a very strong exchange value.
According to the dollar index DXY (US Dollar Currency Index), during the European morning of Friday 19/1/2024, at approximately 8:33 CET, the measured value of the American dollar (USD) was at a point level of 103.40 USD points with a slight correction of its a decrease of -0.12% point value according to this index, which compares the value of the USD with another six major world currencies, including the Japanese yen (JPY). Thus, on the indicated day and time, this currency pair USD/JPY was traded on the foreign exchange market at the rate of 148.33 JPY per USD, with the daily growth of the USD by + 0.12% against the JPY. Amazon currently offers generative AI services to Japanese corporate customers, including Asahi Group, Marubeni and Nomura Holdings. The investment comes at a time when the Japanese government and corporate sector are trying to catch up with the development of artificial intelligence (AI). With these facts in mind, analysts indicate an average price target for NASDAQ AMZN shares of USD 184.66 per share in the short-term investment horizon, with a prediction of further growth in the stock price in the amount of USD 220 per share.