Amazon Just Announced Shocking $25 Billion News. Should Investors Worry?
The e-commerce leader has to fund its data center construction somehow.
Overview
Amazon (NASDAQ: AMZN) is reported to have made a shocking decision in recent days. According to CNBC, it is issuing $25 billion in debt to fund its data center build-out. While it doesn't plan to issue any more debt beyond that in 2026, it's a big deal because Amazon's long-term debt has been soaring in the past few years.
Building data centers isn't cheap, and the cash has to come from somewhere, but is this the right move, or should it scare investors?
Image source: Getty Images.
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Originally published at www.fool.com.
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