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Height: Amazon Likely To Land $10B Defense Contract

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Height: Amazon Likely To Land $10B Defense Contract
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The federal government might soon eat its words on Jeff Bezos.

Height Securities predicts the Department of Defense will award Amazon.com, Inc. (NASDAQ: AMZN) — the enduring target of Oval Office disdain — a cloud-computing procurement contract worth more than $10 billion.

“Amazon is the only provider at present that can meet the draft requirement for hosting secret and top-secret material within the DoD's short timeframe, according to industry experts,” Height analyst Stefanie Miller said in a Tuesday note. “We do not believe the Pentagon will procure a product that does not meet the contract's specifications simply because of political pressure from Trump.”

Amazon is already a choice secret-keeper in the federal government and specially developed Amazon Web Services’ Secret Region for the Central Intelligence Agency. The CIA is five years into a 10-year, $600-million contract with the host, and the Pentagon moved its data to the classified cloud in March.

Miller expects the Defense contract to be awarded by September and does not foresee interference from President Donald Trump.

“Ultimately, we do not think the political pressure that Trump applies either via social media or through the traditional press will affect the outcome of the Pentagon's decision,” Miller said.

Trump was recently revealed to be “obsessed with Amazon” and interested in methods to stunt its growth. By his assessment, the firm exploits the U.S. government’s postal program and tax policies.

Related Links:

The Rise Of An Empire: All The Ways Amazon Grew Even Bigger Under Trump's Nose

Trump Blasts Amazon, Washington Post On 'Internet Tax' Evasion: Is That Even A Thing?

Photo via Wikimedia. 

Latest Ratings for AMZN

DateFirmActionFromTo
Jun 2018DA DavidsonMaintainsBuyBuy
Jun 2018SunTrust Robinson HumphreyReiteratesBuyBuy
May 2018Telsey Advisory GroupInitiates Coverage OnOutperform

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Posted-In: Height Securities Stefanie MillerAnalyst Color Government Politics Analyst Ratings General Best of Benzinga

 

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