Amazon Rises on Dow, Analyst Upgrade, New Tablets and Data Center Plans as California Files Price-Fixing Lawsuit

Amazon shares gained Friday, rising as much as 0.6% in premarket trading and contributing to the Dow Jones Industrial Average's climb of roughly 400 points by mid-afternoon. Telsey Advisory Group reiterated its Outperform rating on the stock following Amazon's Prime event, and at least one analyst called the stock undervalued with AI as its biggest long-term advantage. A Nasdaq analysis projected that a $10,000 investment made now could grow substantially by 2030, citing the company's expanding cloud and AI footprint.

On the product side, Amazon unveiled a new lineup of Android tablets priced between $230 and $500, replacing its older $60 Fire tablet line, signaling a move upmarket in consumer hardware. The company also recently signed a 20-year nuclear power deal to help supply its rapidly growing data center infrastructure, with one industrial supplier identified as a key beneficiary.

Amazon Web Services and United Overseas Bank signed a memorandum of understanding to explore AI-driven banking innovation across ASEAN, extending AWS's financial services reach in the region. AWS also launched Bedrock AgentCore Payments, built in partnership with Coinbase and Stripe, enabling AI agents to discover paid services, authenticate, and pay using stablecoins and the x402 protocol under preset spending limits. AWS CEO separately said the company feels confident AI spending is not a bubble.

Amazon is constructing a 22-hectare data center, roughly the size of 41 football fields, in Thane near Mumbai, India. Reuters reported that local residents have raised concerns about pollution, noise, and a lack of local employment from the project.

On the legal front, the state of California accused Amazon of running a price-fixing scheme that pressures wholesale vendors to raise prices at competing retailers including Target, Walmart, Chewy, and Best Buy. Separately, Amazon's internal "About You" consumer profiling system drew widespread attention after its detailed personal data summaries went viral online. Amazon said the profiles draw only on its own services, not outside data sources, and that users can edit their recommendations. Amazon also cut additional jobs across its retail division, adding to previous rounds of workforce reductions. Jeff Bezos climbed to become the world's second-richest person during the session.