Amazon (AMZN) has announced plans to launch a new Amazon Web Services (AWS) infrastructure region in Chile by the end of 2026. This initiative aims to bolster the capabilities of developers, startups, and businesses across various sectors, including finance, retail, education, government, and nonprofits. By providing access to local data centers, Amazon intends to enable these organizations to run applications and serve end users more efficiently.

As part of its long-term commitment, Amazon is set to invest over $4 billion in Chile. This investment will focus on the construction, connectivity, and ongoing operation and maintenance of the data centers. This significant financial commitment underscores Amazon's dedication to expanding its AWS footprint in South America and contributing to Chile's economic growth and digital transformation.

Wall Street analysts offer an average one-year price target for Amazon.com Inc (AMZN) of $241.70, with estimates ranging from a high of $295.46 to a low of $195.00. This average target implies a 30.64% upside from the current price of $185.01. The average brokerage recommendation for Amazon.com Inc is 1.8, indicating an "Outperform" status.

Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN) in one year is $184.94, slightly below the current price of $185.01. GF Value is GuruFocus' estimate of the fair value calculated based on historical multiples, past business growth, and future performance estimates.

In Q1, Amazon.com Inc (AMZN) reported a 10% year-over-year increase in revenue, reaching $155.7 billion, excluding foreign exchange impacts. Operating income rose by 20% year-over-year to $18.4 billion. Free cash flow for the trailing 12 months was $25.9 billion. North America revenue increased by 8% year-over-year to $92.9 billion, while international revenue also increased by 8% year-over-year, excluding foreign exchange. Advertising revenue grew by 19% year-over-year to $13.9 billion, and AWS revenue increased by 17% year-over-year to $29.3 billion, resulting in an AWS annualized revenue run rate of over $117 billion. Net income was $17.1 billion, including a pretax gain of $3.3 billion from investment in Anthropic. Capital expenditure in Q1 was $24.3 billion, primarily for technology infrastructure and fulfillment network.

For Q2, Amazon expects revenue between $159 billion and $164 billion and operating income between $13 billion and $17.5 billion.

Amazon achieved new delivery speed records, delivering more items in the same day or next day than any other quarter in its history.

However, Amazon faces potential challenges, including uncertainty due to potential heightened tariffs and AWS capacity constraints limiting the ability to capture more AI revenue. The macroeconomic environment remains complex, with uncertainties around consumer demand and global trade impacting future guidance. Stock-based compensation expenses are expected to increase in Q2, affecting operating income.

The new AWS South America (Chile) Region will provide organizations with the ability to build with advanced AWS technologies, like artificial intelligence and machine learning, to help accelerate growth, productivity, and innovation.