Stock exchange operator and financial services provider Nasdaq Inc. (NDAQ) has entered into a multiyear collaboration with Amazon Web Services, Inc. (AWS) a unit of Amazon.com Inc. (AMZN).
The two entities will combine their expertise to build a state-of-the-art, cloud-based infrastructure for the world’s capital markets. Shares of NDAQ closed down 2.8% at $203.23 on November 30.
Since 2008, Nasdaq has used AWS’s elasticity and high security to deliver client-driven solutions. With the partnership, Nasdaq will start migrating its North American markets to AWS in a phased manner starting in 2022.
The first to migrate will be Nasdaq MRX, which is a U.S. options market, followed by the rest.
Both entities have co-developed a new edge computing solution exclusively designed for market infrastructure. The solution will also use AWS Outposts, which can extend its infrastructure, services, and tools to any datacenter, location, or space, or on-premise facility.
The AWS Outposts enable ultra-low latency edge computing capabilities and Nasdaq intends to incorporate it into its core network. This will make Nasdaq the first-ever private AWS Local Zone for the capital markets industry.
The new infrastructure will provide Nasdaq’s clients ease of usage and high-frequency trading capabilities, coupled with access to virtual connectivity services, market analytics, and machine learning. Additionally, the new solution will accelerate Nasdaq’s business and enable the exchange to effortlessly transact billions of dollars in daily trades.
The solution could also be used by other market participants and exchanges to migrate their trading systems to the cloud.
Solutions for the Global EconomyIn addition to the current partnership, both entities will also explore ways to use AWS’s cloud capabilities across other Nasdaq solutions including anti-financial crime, data and analytics, and market infrastructure software solutions.
Nasdaq has over 130 infrastructure clients including exchanges, banks, clearinghouses, central securities depositories, and regulators. These clients rely on Nasdaq for activities such as core trading, clearing, settlement, and surveillance technology. For the effective functioning of these activities, Nasdaq plans to partner with AWS to build viable public cloud and hybrid models.
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Management CommentsPresident and CEO of Nasdaq, Adena Friedman, said, “This landmark partnership with AWS seeks to power a truly cloud-based market infrastructure that is more resilient, scalable, and accessible for all market participants… Our innovative, new collaboration with AWS creates a bridge to the future for our markets and represents the next major step forward in Nasdaq’s cloud journey.”
CEO of AWS, Adam Selipsky, said, “Together, Nasdaq and AWS will change what’s possible for capital markets organizations, helping them to speed up innovation and improve business processes… Our partnership will give Nasdaq a way to more easily move their core infrastructure to the cloud and innovate new services as they continue their second decade of cloud adoption.”
Analysts’ ConsensusThe Wall Street community is cautiously optimistic on the NDAQ stock with a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The average Nasdaq price target of $218.11 implies 7.3% upside potential to current levels.
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Amazon Web Services (AWS), an Amazon.com, Inc. (AMZN) company revealed the launch of a new service: AWS IoT TwinMaker.
The newly launched service will include the built-in capabilities for creating digital twins, such as connecting to data across disparate sources, modeling physical environments, and visualization of data.
Digital twins mimic the structure, state, and behavior of the objects they represent. They are virtual representations of physical systems that are regularly updated with real-world data.
It will enable faster and easier creation of digital twins of real-world systems like buildings, factories, industrial equipment, and production lines.
This, in turn, will help clients build applications that mirror real-world systems, thereby enhancing operational efficiency and reducing downtime.
Notably, the new service does not have up-front commitments or fees to use the AWS IoT TwinMaker. Customers using AWS IoT TwinMaker include Carrier, Siemens, and Accenture, to name a few.
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Management Weighs InMichael MacKenzie, GM at AWS IoT, commented, “Customers are excited about the opportunity to use digital twins to improve their operations and processes, but the work involved in creating a digital twin and custom applications for different use cases is complicated, expensive, and prohibitive for most.”
He added, “With today’s launch of AWS IoT TwinMaker, more customers can now have a holistic view of their industrial equipment, facilities, and processes to monitor and optimize all of their operations in real time.”
Analysts RecommendationMorgan Stanley analyst Brian Nowak reiterated a Buy rating on Amazon with a price target of $4,000 (14.1% upside potential) on the stock.
Consensus among analysts is a Strong Buy based on 31 unanimous Buys. The average Amazon.com price target of $4,095 implies 16.76% upside potential to current levels.
Amazon scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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Shares of Amazon.com, Inc. (AMZN) were trading 1.2% up, at the time of writing, in the early trading session on Wednesday after the company announced plans to invest in 18 new wind and solar energy projects in Europe and the U.S.
The technology firm is based out of Seattle and offers E-commerce, cloud computing, digital streaming, and artificial intelligence services.
Details of the ProjectsThe 18 wind and solar energy projects will be spread across the U.S., Finland, Germany, Italy, Spain, and the U.K., and will boast of a procured capacity of 5.6 gigawatts (GW) so far this year.
These 18 projects will take the company’s total number of renewable energy projects across the globe to 274. They will also help Amazon power all its business operations with renewable energy by 2025, five years earlier than its original target of 2030.
Once these projects become completely operational, they will take AMZN's total committed renewable electricity production capacity to more than 12 GW and 33,700 gigawatt hours (GWh), which is equivalent to powering more than 3 million U.S. homes for one year.
Furthermore, the amount of renewable energy generated by these 18 projects will help in avoiding about 13.7 million metric tons of carbon emissions per year. (See Insiders’ Hot Stocks on TipRanks)
The power generated by these projects will be supplied to Amazon’s corporate offices, fulfillment centers, and Amazon Web Services (AWS) data centers.
CommentsThe Vice-President of Worldwide Sustainability at Amazon, Kara Hurst, said, “Significant investments in renewable energy globally are an important step in delivering on The Climate Pledge, our commitment to reach net-zero carbon by 2040, 10 years ahead of the Paris Agreement.”
The CEO of Clean Energy Buyers Association (CEBA), Miranda Ballentine, said, “For the second year in a row, Amazon has set new records as it works toward fully powering its operations with renewable energy by 2025, five years ahead of schedule. Large-scale clean energy investments like these benefit us all and should be the new normal for industries of all shapes and sizes.”
The Impact Director at RE-Source, Hannah Hunt, said, “The company’s 10 new renewable energy operations across Europe will benefit communities, bring new green jobs, and help meet our commitments to curb the climate crisis.”
Wall Street’s TakeOn November 30, Morgan Stanley (MS) analyst Brian Nowak reiterated a Buy rating on the stock with a price target of $4,000 (14.1% upside potential).
Following the company’s announcement that it expects to be the largest package delivery carrier in the U.S. latest by early 2022, the analyst said, “Many investors and industry observers believed that this was potentially years away but with Amazon Logistics soon likely to be the largest player in the U.S. (with more growth to come), it should have enough capacity to start moving 3P boxes if Amazon so chooses.”
Overall, the stock has a Strong Buy consensus rating based on 31 unanimous Buys. The average Amazon.com price target of $4,095 implies 16.8% upside potential. Shares have gained 10.1% year-to-date.
Website TrafficTipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Amazon’s performance.
According to the tool, compared to the previous year, the company’s website traffic registered a 30.6% decrease in global visits in October. Moreover, the website traffic has declined 2.4% year-to-date against the same period last year.
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