Amazon Invests in Nuclear Energy as AMZN Looks to Challenge GOOGL
In a massive move for the company, Amazon (AMZN) has announced an investment in nuclear energy, following a similar action taken by industry behemoth Alphabet (GOOGL). Indeed, an investment that would’ve been unheard of decades ago is being embraced by two of the biggest stocks on the market.
Amazon Web Service announced that it has invested in three nuclear energy projects. Specifically, a press release stated the company has signed agreements to address the ever-changing demands within the energy sector. The company’s goal is to eventually reach net-zero carbon.
Also Read: US Stock: Amazon Eyes New Sector: Will It Help AMZN Spike To $265?
Amazon Follows Alphabet in New Nuclear Energy Investment
The Magnificent Seven stocks bear the name for a reason. Indeed, these companies represent some of the strongest brands throughout the entire stock market. Moreover, they boast immense power as they compete in some of the most vital industries.
One such sector has increased competition recently. Amazon has announced investments into nuclear energy as it looks to compete with juggernaut Alphabet (GOOGL). Specifically, Amazon unveiled a new agreement that will see it embrace renewable energy in a massive way.
The company unveiled that it is seven years ahead of its 2030 renewable energy goal by matching all electricity consumed in global operations. That has led them to continue seeking out carbon-free energy options. Therefore, nuclear energy has emerged as a viability in what seems like a move out of a science fiction book.
Also Read: Amazon Inks New AI Partnership: AMZN Set for October Surge?
However, the two deals are quite different. Google is committed to paying for power generated by a collection of SMRS. However, that is dependent on their construction before a 2035 deadline. Amazon has paid upfront in their deal with X-Energy. The latter is structured as an investment in the company and therefore a stake in its cause.
It builds on AMZN’s other two deals with Energy Northwest and Dominion Energy. Moreover, the two companies deal in utility and will work in conjunction with the X-Energy investment. Altogether, it shows both companies have made significant efforts to enter the nuclear energy field. Now, how it shakes out for both will be crucial for the impact on their stock prices.