Amazon Is Now A Player In Public Sector Contracts Amid 'JEDI' Award With $100B+ On The Line, Analyst Touts

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