- Citi analyst Ronald Josey reiterated a Buy rating on Amazon.com Inc AMZN with a $145 price target.
- The U.S. DoD awarded its $9 billion Joint Warfighting Cloud Capability (JWCC) contract to AWS, Microsoft Corp MSFT, Alphabet Inc GOOG GOOGL Google, and Oracle Corp ORCL.
- The JWCC replaced the initial $10 billion JEDI contract that Microsoft won in October 2019, and the DoD subsequently canceled in July 2021.
- Also Read: War Winners: Why The Defense Contracting Business Is Thriving
- Given that four cloud providers won a portion of the JWCC, it highlights just how competitive the cloud industry continues to be and the increasing adoption of the multi-cloud approach among buyers.
- And while AWS remains the leader across the broader cloud sector in products, capabilities, and scale, the JWCC contract will likely boost each provider’s Public Sector practice.
- Josey recognizes growth at AWS is decelerating, but given product innovation and its $104 billion of Commitments along with retail wallet share gains and shares down ~20% since 3Q earnings.
- Price Action: AMZN shares traded higher by 2.06% at $90.28 on the last check Thursday.
- Photo by Tony Webster via Flickr
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