Key Stats for Amazon Stock
- Price change for Amazon stock in last 6 months: 9%
- $AMZN Stock Price as of Oct. 9: $262
- 52-Week High: $287
- $AMZN Stock Price Target: $332
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What Happened?
Amazon (AMZN) is in talks to buy AI startup Decart for about $7 billion, the Wall Street Journal reported on Sunday.
The report cited people familiar with the matter. Amazon declined to comment, and Decart did not respond to requests for a comment.
Decart builds AI models for video and simulation. Its Lucy model can edit live video in real time. It has also built Oasis, which creates simulated environments.
Those environments train and test robotics and autonomous-driving systems.
The price tag is a big jump. The Journal said Decart was valued at nearly $4 billion in May after it raised $300 million in a round led by Radical Ventures, with Nvidia joining as a new investor.
Amazon may not be the only suitor.
Bloomberg reported last month that Anthropic chose not to pursue a deal after due diligence. It had explored a $6 billion deal in August.
The Journal said a deal could happen soon if talks don’t fall apart or another buyer shows up.
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What the Market Is Telling Us About Amazon Stock
Amazon stock is already tied closely to AI. On the July earnings call, Amazon reported $200.6 billion in revenue, up 20%. AWS revenue grew 36.7%, its fastest pace in 18 quarters. AWS also has a $496 billion backlog.
A Decart deal would add to that AI push. Amazon is also building its own frontier model, and CEO Andy Jassy said the company wants more control over cost and priorities.
Video and simulation tools could fit that plan. Robotics also matters to Amazon as it expects to more than double its fleet of robotic arms in 2026.
Amazon expects about $220 billion in capital spending in 2026, up from an earlier $200 billion estimate because memory costs are higher.
Jassy also said free cash flow will face short-term pressure as data centers are built. Amazon stock investors may ask how a $7 billion deal fits with that spending.
This report alone is unlikely to move Amazon stock.
The deal is small next to Amazon’s size, and the talks are still early. Still, Amazon stock could get a lift if the company shows how Decart fits into AWS and its robotics plans.
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So what is Amazon stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
