Nasdaq AMZN Amazon

Amazon Web Services (AWS), an Amazon.com company, inked a strategic collaboration agreement with DISH Network Corporation. Per the terms of the deal, AWS will act as DISH’s preferred cloud provider and DISH will build its 5G network on AWS.

Furthermore, both companies will jointly work to transform how organizations and customers, including AWS and Amazon (AMZN), order and consume 5G services or create their own private 5G networks, the company said.

Notably, DISH (DISH) plans to deploy its first standalone, cloud-based 5G Open Radio Access Network (O-RAN) in the US, starting with Las Vegas later in 2021.

AWS’s well-established infrastructure and wide range of services will aid DISH in deploying a cloud-native 5G network. It should be noted that the 5G network incorporates O-RAN, the antennas and base stations, which link phones and other wireless devices to the network, and the 5G Core, which directs traffic flow within the network. Additionally, DISH’s fully automated Operation and Business Support Systems (OSS and BSS) will also be enhanced, which will help the company in provisioning and operating its customers’ 5G workloads and monetizing its network. (See Amazon stock analysis on TipRanks)

Through the DISH network on AWS, the process of creating new 5G applications will be simplified. What's more, developers of both DISH and AWS will be able to create innovative 5G solutions for various industries through leveraging standardized application programming interfaces (APIs), which will connect with data on DISH network attributes.

AWS CEO Andy Jassy said, “DISH’s cloud-native and truly virtualized 5G network is a clear example of how AWS customers can use our proven infrastructure and unparalleled portfolio of services to reinvent industries. This collaboration means DISH and its customers can bring new consumer- and enterprise-centric services to the market as quickly as they’re created to deliver on the promise of 5G. Together, we’re opening the door to new technologies that will transform factories, workplaces, entertainment, and transportation in ways people have only dreamed.”

On April 21, Oppenheimer analyst Jason Helfstein reiterated a Buy rating and increased the price target to $4,200 (24.9% upside potential) from $4,100, as he sees AMZN as the firm's "best large-cap pick.”

Helfstein said, “We are raising our AWS revenue estimates ahead of 1Q results. Our non-AWS estimates remain unchanged. Post 1Q earnings focus will continue to be on AMZN’s investment plans, as it recorded $11B in one-time COVID-19-related costs in 2020. We expect funds to be redeployed to expand grocery, pharmacy, and advertising.”

The consensus rating is a Strong Buy based on 32 unanimous Buys. The average analyst price target stands at $4,106.60 and implies upside potential of 22.2% to current levels. Shares have gained 42.3% over the past year.

On top of this, Amazon scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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Amazon has reached an agreement with the United Launch Alliance (ULA) to supply nine Atlas V launch vehicles. The launch vehicles should help support the tech giant's ambitions of offering affordable broadband services to customers and communities worldwide as part of Project Kuiper.

According to Amazon (AMZN), Atlas V is a reliable launch vehicle that provides suitable performance capacity and dependability levels. Launch vehicles from ULA boast a 100% success rate over more than 85 launches and have already been used in multiple NASA missions.

The Atlas V launch vehicles should help support Amazon’s Project Kuiper, that seeks to connect tens of millions of people. The initiative aims to offer a fast, affordable broadband network in areas where access is unreliable.

"We're determined to make affordable broadband a reality for customers and communities around the world," stated Amazon’s CEO and founder, Jeff Bezos. Adding further, he said, "ULA is a fantastic partner that's successfully launched dozens of missions for commercial and government customers, and we're grateful for their support of Kuiper."

Amazon has already committed $10 billion towards Project Kuiper, which already employs more than 500 people. The team is currently working on new technologies and innovations that can make broadband affordable and accessible.

After a 76% pop in 2020, Amazon shares are up 3% year to date. (See Amazon stock analysis on TipRanks).

Morgan Stanley’s analyst Brian Nowak reiterated a Buy rating on Amazon stock on a growing belief that the company will increase its investment in its workforce. Such investments should enhance Amazon's competitive edge against new players in the industry.

Nowak stated, “We are often asked about where AMZN is likely to focus and invest aggressively next. Over the past 5 years answers have included advertising, healthcare, last mile logistics, 1-day, international, B2B and others…but now we think the answer is increased worker compensation and safety/process investment.”

Nowak maintains a $4,200 price target on AMZN, implying 24.9% upside potential to current levels.

Consensus among analysts on Wall Street is a Strong Buy based on 32 Buy ratings. The average analyst price target of $4,106.60, implies 22.15% upside potential to current levels.

AMZN scores an 8 out of 10 on the TipRanks’ Smart Score rating system, signaling it is likely to outperform the overall market.

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