Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 11, 2013

Article Excerpt

AMAZON.COM INC., $310.89, symbol AMZN on Nasdaq, won a $600-million deal to build a cloud computing service for the U.S Central Intelligence Agency early this year. This system would let the CIA more effectively connect with the broader intelligence community. The project will run over four years. However, the CIA has traditionally awarded many of its big computing contracts to IBM (New York symbol IBM), a recommendation of our Wall Street Stock Forecaster newsletter. IBM protested the awarding of this deal to Amazon, and the U.S. Government Accountability Office recommended that the CIA reopen negotiations. Immediately afterward, Amazon filed a complaint, which then led to a hearing on Monday of this week. Judge Thomas Wheeler of the U.S. Court of Federal Claims heard arguments from both Amazon and IBM and ultimately ruled in favour of Amazon. Demand for cloud computing, which mainly involves storing data on remote, secure servers, is growing strongly. That’s because it gives cost-conscious businesses access to better services…