Amazon Stocks Slide Despite Nuclear Deal
Amazon's stock price dropped despite a significant nuclear power agreement with Constellation. The deal supports the expansion of Maryland's Calvert Cliffs plant, which will provide essential electricity for Amazon's AI ambitions. The contract includes an additional 190 megawatts of generation expected between 2030 and 2032.
The total capacity will be 690 megawatts, with Constellation announcing a $3 billion investment in the existing facility. However, investors are left uncertain about the economics of the deal, as the pricing and Amazon's annual payments remain undisclosed.
Amazon's shares have been trading around $247.33, up approximately 0.73%, at around 12:31 p.m. ET Thursday. The company's valuation shows shares just 1.02% below the GF Value estimate of $249.87, suggesting a narrow gap with little valuation cushion.
The new capacity will take years to come online, leaving near-term demand still needing a bridge. Amazon's financial payoff from this deal will depend on what it pays for electricity and how much profitable cloud business it can generate from it.