Amazon (AMZN) has announced several e-commerce updates in the last 24 hours that raise positive investor sentiment behind its stock. The company said on Wednesday it is expanding its fast-delivery, same-day option to perishable food items. It is the latest move by Amazon to compete with delivery services offered by Walmart+ and Instacart. As a result of the announcement, AMZN shares are up 2% on Wednesday.
With the announcement, Amazon shoppers in more than 1,000 U.S. cities can now utilize same-day delivery of perishable food items. The company plans to expand the service to 2,300 cities by the end of the year, Amazon says. The new same-day delivery service is free for Prime members, who pay $14.99 monthly or $149 annually, for orders over $25. Shoppers without a Prime membership have to pay a $12.99 fee, regardless of order size, to use the new service.
“When Amazon began to add perishable groceries like bananas, milk, eggs, and bread to its Same-Day Delivery service in regions like Phoenix, Orlando, and Kansas City, customers embraced the convenience,” Amazon wrote in a press release. “Strawberries, Honeycrisp apples, limes, and avocados now rank among the top 10 items in Same-Day Delivery carts.”
What Else is Pumping Amazon Stock? Forecasts Begin to Climb
In addition, Shares in Amazon (AMZN) stock have been trading higher in the past week after founder Jeff Bezos confirmed a new crypto deal with his Blue Origin company. Bezos’s rocket and space exploration firm Blue Origin is now accepting cryptocurrencies like Bitcoin, Ethereum, and Solana to purchase flights to space. With both companies being founded by the same man, similarly to SpaceX and Tesla (TSLA), when one reveals promising updates, the other tends to trend higher among investors, also. Following the announcement by Blue Origin, AMZN stock climbed in the second half of that day’s trading session.
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While Amazon (AMZN) is trading higher, the news also knocked shares of supermarket chain Kroger (KR) and grocery-delivery company Instacart (CART) in morning trade. Walmart stock is also down 2% since Wednesday morning. Stock forecasts for AMZN remain high, and experts from different firms are bullish on the quarters ahead for Amazon. The company is experiencing strong growth in e-commerce, with July spending up 7% year over year, bolstered by Prime Day. Additionally, Amazon’s strategic investment in IonQ strengthens its position in quantum computing, signaling confidence in future technologies.
Analysts maintain a positive outlook on Amazon, with price targets ranging from $248 to $297. The highest target of $297 indicates significant upside potential from the current market price of $221.47. That AMZN forecast comes from Rosenblatt analysts. Pivotal Research, Wedbush, and Cantor Fitzgerald also forecast high direction and price target scores.