Amazon Deepens Europe Push With $18 Billion Germany Investment, AWS Expansion

Amazon.com Inc. (NASDAQ:AMZN) announced Tuesday that it plans to invest more than 16 billion euros (roughly $18 billion) in Germany in 2027, expanding its cloud, AI, logistics, and media operations as the company continues to build out its European footprint. Amazon Expands Germany Investment The package includes 4.8 billion euros to expand the AWS Europe (Frankfurt) Region to meet demand for cloud and artificial intelligence services. Amazon is also opening a second robotics and AI research lab in Berlin, doubling its research presence in the capital and adding specialized scientific and engineering roles. Previously announced logistics projects in Germany account for more than 3,000 new jobs. Amazon also plans additional fulfillment-center upgrades and new facilities across Germany. Read Also: Amazon High-Bids for Live Sports Rights to Drive Prime Engagement Amazon Leo has secured 24 launches with Arianespace for its low-Earth-orbit satellite network, which is designed to extend internet access to areas existing networks do not reach. Prime Video plans more than 15 productions in Germany through the end of 2027. Germany Push Builds On European Expansion The latest commitment adds to Amazon’s existing presence in Germany, where the company said it has invested more than 100 billion euros since 2010, building more than 100 sites. It also follows Amazon’s June announcement of a more than 10 billion euros investment to expand and modernize its European fulfillment network, including the deployment of next-generation robotics. "We want German businesses, communities, and creators to have the infrastructure and tools they need to compete and grow," said David Zapolsky, Amazon’s chief global affairs and legal officer. Morgan Stanley Raises Amazon Price Target Separately, Morgan Stanley named Amazon a top pick and raised its price forecast to $350 from $335 on Oct. 19, while analyst Brian Nowak maintained an Overweight rating. Nowak raised his AWS revenue growth forecasts to 47% for 2027 and 42% for 2028, from 41% and 37%, respectively. His investment case also highlighted potential AWS margin outperformance, AI-powered shopping, and robotics. Amazon is scheduled to report third-quarter results after the market closes on Oct. 29. Analysts expect EPS of $1.96, up from $1.95 a year earlier, while revenue is projected at $202.21 billion, up from $180.17 billion a year ago. The stock trades at a price-to-earnings ratio of 21.1x, suggesting a fair valuation relative to peers. Technical Outlook Amazon remains technically bullish, trading above its key 20-day, 50-day, and 100-day moving averages. The RSI of 56.50 remains neutral, suggesting the stock is neither overbought nor oversold, while the MACD above its signal line points to continued positive momentum. Key support sits at $244.50, with resistance at $267.50. A break above resistance could reinforce the bullish trend, while a move below support could signal weakening momentum. The stock has gained 21.24% over the past 12 months and currently trades at 72.7% of its 52-week range. AMZN Price Action: Amazon shares were up 0.06% at $262.60 in Tuesday’s premarket session, according to Benzinga Pro data. Read Also: Jim Cramer Has a Warning for AI Data Center Investors Ahead of MSFT, GOOGL and AMZN Earnings: ‘Too Early to Say That the Coast Is Clear’ Image via Shutterstock/bluestork