TLDR
- Amazon sold a record C$14 billion ($10 billion) bond in Canada — the largest corporate bond offering ever in Canadian dollars
- The deal attracted roughly C$28 billion in orders, double the amount offered
- Amazon has borrowed more than $70 billion since the start of 2025 to fund its AI and infrastructure push
- CEO Andrew Jassy sold 20,000 AMZN stock at ~$263.42 per share on May 21, totalling $5.27 million
- Analysts maintain a Moderate Buy rating with a consensus price target of $312.52; stock opened at $245.22 Tuesday
Amazon (AMZN) set a new record in the Canadian debt market on Monday, selling C$14 billion ($10 billion) worth of investment-grade bonds — the largest corporate bond deal ever issued in Canadian dollars.
The offering drew around C$28 billion in orders, nearly double what was on the table. That level of demand let Amazon tighten the yield on its longest tranche — a 30-year note — to about 1.10 percentage points above government bonds, roughly 0.05 points tighter than initial guidance.
The deal was structured across five tranches, with maturities ranging from three to 30 years. Senior unsecured notes make up the full offering.
Amazon stock opened at $245.22 on Tuesday, down 0.33% on the day. The stock has a 52-week range of $196.00 to $278.56 and carries a market cap of $2.64 trillion.
Why Amazon Is Borrowing So Much
This isn’t a one-off. Amazon has now raised more than $70 billion in debt since January 2025, spanning US dollar, euro, Swiss franc, and now Canadian dollar markets.
The reason is scale. Amazon plans to spend around $200 billion this year on data centers, chips, and AI infrastructure. The Canadian bond sale is another piece of that funding strategy.
On the AI front, Amazon recently signed a multibillion-dollar deal with Corning for optical fiber and connectivity products to support its US data center buildout. The FCC also gave its Project Kuiper satellite arm more flexibility on deployment timelines.
Amazon’s last earnings report, released April 29, was strong. The company posted EPS of $2.78, well above the $1.63 consensus. Revenue came in at $181.52 billion versus expectations of $177.28 billion — up 16.6% year-over-year.
Analyst and Institutional Views
Wall Street remains broadly positive on AMZN. Benchmark raised its price target from $275 to $370 and kept a Buy rating. Piper Sandler lifted its target to $315. UBS and Guggenheim both sit at $315 and $320 respectively. The consensus price target across 57 Buy-rated analysts sits at $312.52.
Institutional ownership stands at 72.20% of the float. Brighton Jones LLC added over 397,000 units in Q4, while Parkside Investments trimmed its position by 12.3%.
On the insider side, CEO Andrew Jassy sold 20,000 units at $263.42 on May 21, netting $5.27 million. The transaction was executed under a pre-arranged Rule 10b5-1 plan. VP Shelley Reynolds also sold 2,363 units the same day at $262.38. Insiders have sold around $51.6 million worth of stock over the past three months.
Analysts expect full-year EPS of $7.71 for the current fiscal year.
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