Amazon (NASDAQ:AMZN) is bringing out a full-court press, trying to get more people interested in its various offerings. Just yesterday, we heard how Amazon is upgrading Prime with an attractively priced though perhaps only marginally useful health insurance add-on. Now, it’s got one more add-on to bring out, though this one also might fall on deaf ears. Worse, investors aren’t exactly happy about it, as Amazon is down somewhat in Thursday afternoon’s trading.
This time, Amazon’s new expansion focuses on Amazon Fresh, its grocery delivery operation. It’s opening up grocery delivery to those who aren’t Prime members, who were the only ones who could get in on the action before. Further, Amazon plans to step this process up, and expand the free pickup and delivery service to Whole Foods locations as well. That will open up over 3,500 locations throughout the United States that can get access to two-hour delivery on groceries. Plus, for those who remain Prime members, they’ll have access to discounts and free deliveries for orders over $100.
The news comes at a good time for Amazon, as it recently found itself under fire from another lawsuit. The latest legal assault comes over a matter of returned products and refunds therein; the class-action suit targeting Amazon alleges that Amazon failed to issue refunds for several customers, which is actually a violation of its own policies. The suit noted that Amazon “…has engaged in a repeated and systematic scheme” over returns, despite the fact that the products in question were “…timely and properly…” returned. There are two other suits out there about similar matters; Amazon tried to get one partially dismissed, while a third was filed last month.
Is Amazon a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 40 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $176.03 per share implies 25.38% upside potential.
