Amazon’s Massive Bond Sale Draws $126 Billion in Orders, One of the Largest Ever

Tech giant Amazon AMZN +0.55% ▲ is seeing enormous investor demand for its latest U.S. bond offering, with orders reportedly reaching about $126 billion. As a result, it has become one of the most in-demand corporate debt offerings ever, according to Bloomberg. In addition, the massive order book highlights just how eager investors remain to lend money to large technology companies even as geopolitical tensions and economic uncertainty weigh on markets.

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While the deal still falls slightly short of the $129 billion in demand that Oracle ORCL -0.08% ▼ attracted for its bond sale last month, it comfortably exceeds the roughly $125 billion in orders that Meta Platforms META +1.58% ▲ generated in October. Interestingly, Amazon is reportedly making a multi-tranche offering in the U.S. that could include as many as 11 different bonds, with maturities ranging from two years to as long as 50 years. Meanwhile, the company is also marketing a separate eight-part bond sale in Europe.

Unsurprisingly, major banks, including JPMorgan Chase JPM +0.32% ▲ , Goldman Sachs GS +0.87% ▲ , HSBC Holdings HSBC +1.32% ▲ , and Citigroup C +3.29% ▲ , are helping to manage the offering, though none have commented on the transaction. Overall, investors continue to show a strong appetite for debt issued by the world’s largest technology companies.

Is Amazon a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 40 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $279.88 per share implies 30.8% upside potential.

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