This article was originally published on TipRanks.com
Amazon (AMZN) has inked a strategic partnership agreement with Stellantis NV as it seeks to gain a stronger foothold in the transportation industry. Reuters reports that the two are developing cars and trucks using Amazon’s technology. The partnerships will also result in the deployment of Stellantis electric vans to Amazon’s delivery network. AMZN shares fell 1.89% to close at $3,287.14 on January 5.
Amazon is a U.S. company that offers online retail shopping services. It also offers cloud computing services, database storage, and other services. Amazon’s earnings report for Q4 2021 is scheduled for February 03, 2022.
The two companies are joining forces to develop software to power the infotainment systems in Stellantis cars. The system will leverage Amazon’s Alexa technology to enable voice-controlled navigation maintenance. The voice-controlled features should also support e-commerce marketplaces and payment services.
While the strategic network is expected to help Amazon strengthen its logistics network, it should also help Stellantis close the gap on Tesla (TSLA). The partnership is expected to result in sophisticated cars featuring infotainment systems connected to the data processing cloud.
Additionally, Amazon is expected to help Stellantis speed up the development of new digital products. In return, the automaker will use Amazon cloud to enable mobile network and computing power futures in its cars.
In addition, Amazon is to become Stellantis’ first customer for a line of electric delivery vans poised to be launched next year. Plans are underway to make thousands of Stellantis electric vans available to the public.
This week Wolfe Research analyst Deepak Mathivanan reiterated a Buy rating on Amazon and raised the price target to $4,100 from $3,800, implying 24.73% upside potential to current levels.
Consensus among analysts is Strong Buy based on 30 Buys. The average Amazon price target of $4,137.50 implies 25.87% upside potential to current levels.
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