Amazon “All-In” on UK Investment

Ion Jauregui – Analyst at ActivTrades
Amazon announced on Tuesday an ambitious £40 billion investment in the United Kingdom over the next three years. The goal: to boost technological innovation, expand its logistics network, and strengthen the infrastructure needed for artificial intelligence development across Europe.
According to the company, this investment will contribute approximately £38 billion to the UK’s GDP and includes the construction of four new fulfilment centres, delivery stations, and upgrades to Amazon’s more than 100 existing operational sites in the country. Part of this expansion will create 4,000 new jobs in Hull and Northampton, in addition to new roles in the East Midlands and other regions.
A significant portion of the plan includes the £8 billion previously announced in September 2024 for AWS data centre development through 2028. This move reinforces Amazon’s commitment to cloud computing leadership and AI-driven services.
UK Prime Minister Keir Starmer described the announcement as “a huge vote of confidence in the UK as a place to do business,” while Amazon CEO Andy Jassy highlighted the company’s steady growth in the country over the past 27 years.

Fundamental Analysis: Strong Results with a Cautious Outlook
As of yesterday’s close, Amazon (NASDAQ: AMZN) shares slipped by –0.62%, ending the session at USD 208.47. However, the Q1 2025 financials reveal a robust growth trajectory:
• Revenue: USD 155.7 billion (+9% YoY)
• Net Income: USD 17.1 billion (+64%), with EPS at USD 1.59
• AWS: USD 29.3 billion in revenue (+17%), with an operating margin near 40%
• Amazon Ads: USD 13.9 billion (+19%), consolidating as a key revenue driver
• Operating cash flow: USD 113.9 billion over the last 12 months
Despite this strength, the company issued a conservative outlook for Q2, which applied some pressure on markets: operating income is expected between USD 13.0 and 17.5 billion, below analysts’ consensus.

Technical Analysis: Solid Support, But Breakout Needed
From a technical standpoint, Amazon maintains the bullish structure initiated in November 2023. It is currently trading near the technical resistance range of USD 191–218, a breakout above which could pave the way toward the current high of USD 242.52.
• Key support: USD 202.04
• Moving averages: The 50-day MA is above the 200-day MA, and the 100-day MA has remained consolidated above both since the bullish crossover on May 30
• RSI: Neutral (~51%), providing room for further upside after the last failed attempt to break the USD 217.96 resistance
A confirmed break above USD 218 could signal a renewed expansion phase. Conversely, a drop below the USD 200 mark would test the bullish channel and could lead to a correction toward the current point of control near USD 187, or even lower toward USD 165, which marks the current technical floor.

Conclusion
Amazon combines operational strength with a long-term strategic vision in Europe. Its commitment to the UK—through investment in logistics, technology, and sustainability—reinforces its role as a key player in the continent’s digital transformation. In the markets, despite a cautious guidance, Amazon’s fundamentals remain solid, and its stock continues to offer opportunities in a stable growth environment.




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