After a challenging week that saw significant declines, Amazon shares are staging a strong recovery at the start of the trading week. This positive momentum stems from more than just an optimistic analyst upgrade—it’s driven by revelations about the technology giant’s previously underestimated infrastructure scale that could reshape investor perception. The critical question remains whether this represents a genuine reversal or merely temporary relief from recent selling pressure.
Strategic Data Defense Emerges
The e-commerce leader is making aggressive moves to protect its valuable data assets. According to industry reports, Amazon has begun actively blocking OpenAI’s ChatGPT web crawlers from accessing its platform. This defensive maneuver aims to prevent third-party artificial intelligence systems from harvesting Amazon’s proprietary product and pricing information.
This strategic play demonstrates how fiercely companies are battling for data supremacy behind the scenes. By securing its data treasure trove exclusively for its own ecosystem, Amazon strengthens its competitive positioning in the increasingly important AI landscape.
Infrastructure Scale Surprises Market
BNP Paribas Exane has generated significant market attention with its initiation of coverage on Amazon. The analysts assigned an “Outperform” rating accompanied by a substantial price target of $320. However, the truly groundbreaking development comes from internal documents revealing the extensive reach of Amazon’s physical infrastructure.
Should investors sell immediately? Or is it worth buying Amazon?
The documentation indicates Amazon operates more than 900 data centers across over 50 countries worldwide. Market participants had not fully appreciated this massive scale of physical assets, which now appears to justify the company’s substantial capital expenditures in recent quarters. The competitive “moat” that Amazon has built seems considerably deeper than rivals may have anticipated, positioning the company strongly for the AI era.
Recovery Following AI Bubble Concerns
The recent positive developments arrive after Amazon stock endured a painful weekly decline of nearly 9 percent. That sell-off was primarily driven by mounting concerns about potential overvaluation in artificial intelligence investments. The current infrastructure revelations are providing investors with renewed confidence that Amazon’s capital investments are translating into tangible competitive advantages rather than speculative software ventures.
Holiday Season Presents Critical Test
Market participants are now turning their attention toward the upcoming holiday shopping season, with Black Friday and Cyber Monday representing the next significant catalysts for Amazon’s performance. Currently trading at approximately €192.50, the stock is attempting to establish support following its recent pullback.
If bullish investors can capitalize on the positive sentiment generated by the BNP upgrade, they may regain control of the market direction. However, should stabilization efforts fail, worries about technology sector valuations could quickly resurface, potentially testing recent price levels.
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