Amazon Partners with Stellantis NV to Improve Transportation Network – Report
Amazon (AMZN) signed a strategic partnership agreement with Stellantis NV with the aim of establishing a stronger foothold in the transport industry. Reuters reports that the two are developing cars and trucks using technology from Amazon. The partnerships will also result in the deployment of Stellantis electric vans on Amazon’s delivery network. AMZN stock fell 1.89% to close at $ 3,287.14 on January 5.
Amazon is an American company that provides online retail services. It also offers cloud computing, database storage and other services. The Amazon Earnings Report for the fourth quarter of 2021 is scheduled for February 03, 2022.
The two companies are joining forces to develop software to power Stellantis car infotainment systems. The system will take advantage of Amazon’s Alexa technology to enable maintenance of voice-activated navigation. Voice activated features are also expected to support e-commerce marketplaces and payment services.
While the strategic network should help Amazon strengthen its logistics network, it should also help Stellantis close the gap on Tesla (TSLA). The partnership is expected to result in sophisticated cars with infotainment systems connected to the data processing cloud.
In addition, Amazon is expected to help Stellantis accelerate the development of new digital products. In return, the automaker will use Amazon’s cloud to enable the future of the mobile network and computing power in its cars.
Additionally, Amazon will become Stellantis’ first customer for a line of electric delivery vans slated to launch next year. Plans are underway to make thousands of Stellantis electric vans available to the public.
This week, Wolfe Research analyst Deepak Mathivanan reiterated a buy note on Amazon and raised the price target to $ 4,100 from $ 3,800, implying a potential upside of 24.73% per compared to current levels.
The consensus among analysts is a strong buy based on 30 buys. Amazon’s average price target of $ 4,137.50 implies upside potential of 25.87% from current levels.
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