Amazon (AMZN) Stock: AWS Signs Major Cloud Deal Ahead of Thursday Earnings

TLDR

• Amazon Web Services (AWS) signed a three-year cloud and AI deal with Prosus NV worth hundreds of millions of dollars
• The agreement comes just before Amazon’s Q4 fiscal 2025 earnings report on Thursday, February 5
• Prosus will migrate its cloud and AI operations to AWS data centers across multiple regions
• The deal is expected to deliver double-digit cost savings for Prosus through system consolidation
• Analysts expect Amazon Q4 adjusted EPS of $1.97 on revenue of $211.44 billion, up 12.6% year-over-year

Amazon Web Services has secured a major cloud and AI contract ahead of the company’s fourth-quarter earnings report. The deal with Prosus NV signals continued demand for enterprise cloud services even as companies watch their budgets carefully.

The three-year agreement is valued in the hundreds of millions of dollars according to Prosus Head of Ecosystem Igor Cardoso. He declined to reveal the exact contract value in an interview with Bloomberg.

Under the terms, Prosus will shift its cloud and AI operations to AWS infrastructure. The company will use Amazon’s data centers across multiple regions to support its business.

Amazon.com, Inc., AMZN

The deal includes collaboration with Amazon’s technical teams. Prosus aims to scale its AI capabilities while maintaining cost efficiency through the partnership.

Amazon is set to report its Q4 fiscal 2025 results on Thursday, February 5. Wall Street analysts forecast adjusted earnings per share of $1.97, up from $1.86 in the year-ago period.

Revenue is projected to climb 12.6% year-over-year to $211.44 billion. The AWS deal provides a positive data point heading into the earnings announcement.

Cost Control Drives Cloud Spending

Prosus expects to achieve double-digit cost savings from the AWS migration. The savings will come from consolidating and standardizing its systems on a single cloud platform.

The deal demonstrates that companies continue investing in cloud and AI when it supports cost reduction goals. Businesses are prioritizing efficiency gains over pure growth spending in the current environment.

For Amazon, the agreement adds to its backlog of future cloud revenue. Long-term contracts like this one help stabilize AWS performance even when economic uncertainty persists.

The partnership also highlights resilient demand for AI-related cloud services. Companies are still willing to commit substantial budgets to AI infrastructure that delivers measurable returns.

AWS Backlog Shows Customer Commitments

Amazon has built a larger pipeline of contracted cloud revenue according to company data. The growing backlog reflects steady customer commitments to AWS services over extended periods.

These multi-year agreements provide revenue visibility and reduce quarterly volatility. They also indicate customer confidence in AWS as a long-term technology partner.

Amazon shares have declined 1.4% over the past year. The stock currently trades below analyst price targets despite the company’s cloud momentum.

TipRanks shows a Strong Buy consensus rating for Amazon based on 35 Buy ratings and one Hold. The average price target of $298.53 suggests 25.1% upside from current levels.

Prosus will work with AWS teams to deploy AI tools across its portfolio companies. The standardized approach should speed up implementation while keeping expenses under control.

The timing of the announcement underscores AWS competitive position ahead of quarterly results. It provides concrete evidence of enterprise demand in advance of Thursday’s earnings call.

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