Amazon (AMZN) is preparing to issue Swiss franc bonds for the first time, in an effort to continue funding its recent AI efforts. Big Tech hyperscalers like Amazon have begun to turn to new debt markets to raise funds. A representative for Amazon specifically said the proceeds would be used for general business purposes, including supporting investment and capital expenditure, as well as repaying upcoming debt maturities.
Amazon has mandated BNP Paribas SA, Deutsche Bank AG, and JPMorgan Chase & Co. for a six-part Swiss franc bond sale across maturities from three to 25 years, sources close to the bond sale told Bloomberg Monday. The e-commerce giant has yet to put out a release confirming the bond sale.
“The Swiss market continues to offer steady demand for high-grade names and a strong bid for familiar US corporate issuers,” said Apostolos Bantis, a managing director of fixed income at Union Bancaire Privee Ubp SA. “Issuing several maturities at once also lets borrowers tap different investor pockets, raise more money, and keep concessions tight while the window remains open,” Bantis added.
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AMZN stock has stagnated around $272 in the past week, but is up 14% overall in the last 30 days. It recently beat all market expectations in the Q1 earnings call as AWS grew 28% year-over-year, reaching $37.6 billion. However, its Capex towards AI remains a hot topic, and Amazon’s decision to sell its first Swiss Franc Bond pushes that narrative, which can be seen in its stock’s recent stagnation.
As Amazon (AMZN) continues its heavy artificial intelligence push by deepening its ties with AI company Anthropic, Wall Street is bullish. Amazon’s latest stock forecasts draw strength from AWS momentum, AI chip revenue, and a rapidly expanding advertising business. Analysts generally see potential for Amazon’s stock to rise post earnings, with several setting targets above the current $270 price. Wedbush and TD Cowen have a $300 target, suggesting strong upside potential.
Source: Watcher Guru
