Amazon.com (AMZN) Stock Higher After Increased Italy Investment
NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) - Get Report are advancing 0.75% to $749.99 in afternoon trading today as the Seattle-based e-commerce giant announced it will be investing $550 million in Italy's move to improve its digital commerce.
The most recent move is the largest foreign IT investment to be unveiled in Italy since Prime Minister Renzi announced plans to boost broadband rollout in Italy, Reuters reports.
Amazon.com is also set to announce a series of additional investments in the market, on top of the already 450 million euros invested over the past six years.
About 150 million euros will be used to build a storage and logistics center outside Rome, a development slated to open next year and that will employ 1,200 people. The company will also be building data centers in Italy to expand its cloud-service division.
Currently, Italy ranks last in the EU for Internet usage, as less than half of Italian households use a fixed-line broadband connection, according to Reuters.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate AMAZON.COM INC as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: AMZN
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