Amazon Ditches Growth Hopes Despite $2B Bet on Prime Video
Amazon's stock price dropped by 2% to $261 per share on Thursday afternoon, despite announcing a major investment in its Prime Video streaming service for Latin America. The e-commerce giant plans to invest over $2 billion between 2027 and 2030, focusing on more than doubling original locally produced content and acquiring rights to stream live sports.
The investment will target Mexico, Brazil, Argentina, Colombia, and Chile, with Amazon calling it 'a first-of-its-kind' move in the region. The company's live sports services are growing rapidly in Latin America, with over 20 million households tuning in to watch sports on Prime Video so far this year.
Amazon's streaming service is a significant contributor to its overall revenue, accounting for around 16% of its total revenue through subscription fees and advertising sales. Despite the decline in stock price, analysts maintain a Strong Buy consensus rating for Amazon, with an average price target of $334 implying a potential upside of about 28%.