Amazon Teams With Google On 'Multicloud' Service. How Stocks Are Reacting.

Core Insights - Amazon's cloud computing division, AWS, is set to showcase its advancements in artificial intelligence at the annual re:Invent conference, with a new service called AWS Interconnect aimed at improving connectivity between cloud service providers [2][4] - Analysts have raised Amazon's stock price target to $305, citing AWS's rapid expansion and increased capacity to meet AI-related demand [5][6] - AWS plans to double its capacity by 2027, which could lead to significant revenue growth, with projections suggesting a 14% to 22% upside in AWS revenue for 2026 and 2027 [6] Company Developments - Amazon's re:Invent conference is a critical platform for the company to demonstrate its competitive edge in the cloud market, especially against rivals like Microsoft and Google [6][7] - The new AWS Interconnect service is designed to simplify the process of connecting multiple cloud providers, addressing challenges faced by organizations [3][4] - AWS has recently experienced its best sales growth since 2022, indicating a strong recovery and potential for future growth [7] Market Performance - Amazon's stock is currently trading at $233.89, showing a year-to-date increase of approximately 6% [8][9] - The stock experienced a rally following stronger-than-expected Q3 results but faced volatility due to broader market trends affecting AI-related stocks [9] - Amazon holds a high IBD Composite Rating of 90 out of 99, reflecting its strong fundamentals and technical metrics [10]