Here's Why Amazon Is Reportedly Selling Bonds Again After Three Years

• The report added that the price talks for the longest portion of the deal, a 40-year bond, are about 1.15 percentage points above Treasuries.
• Goldman Sachs Group, JPMorgan Chase & Co., and Morgan Stanley are managing the bond sale, Bloomberg News added. 
• In late October, Meta Platforms reportedly received roughly $125 billion in orders for its $25 billion bond offering.

Amazon.com. (AMZN) has reportedly launched a U.S. dollar corporate bond offering on Monday, marking its first issuance in nearly three years.

According to a Bloomberg News report, the e-commerce giant is selling the debt in as many as six parts. The report added that the price talks for the longest portion of the deal, a 40-year bond, are about 1.15 percentage points above Treasuries.

The report added that proceeds from the bond offering will be for general corporate purposes, which may include the repayment of debt, acquisitions, and investments. Goldman Sachs Group, JPMorgan Chase & Co., and Morgan Stanley are managing the bond sale, according to Bloomberg News.

AI Investments And Tech Bond Sale

The report noted that tech companies have issued several bonds in the last few months, helping to push global issuance to a record high of more than $6 trillion this year.

Bloomberg News, citing JPMorgan Chase, reported that a fresh wave of spending to finance investments in artificial intelligence is expected to drive issuance in the U.S. high-grade market to a record $1.81 trillion next year.

In late October, Meta Platforms (META) reportedly received roughly $125 billion in orders for its $25 billion bond offering. The funds from the bond sale are intended to support ongoing corporate projects, including the development of AI infrastructure and initiatives. 

Google-owner Alphabet (GOOGL) was also reportedly planning to sell at least 3 billion euros worth of bonds.

How Did Stocktwits Users React?

Retail sentiment on Amazon remained unchanged in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits.

A Stocktwits user noted that bond issuance was good for Amazon stock.

Shares of Amazon have gained over 15% in the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: EU Officials Concerned US Tariff Expansion May Breach Spirit Of Summer Trade Deal: Report

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