Amazon (NASDAQ:AMZN) plans to expand the ultra-fast drone deliveries outside the U.S. The e-commerce behemoth is set to introduce this service in Italy and the United Kingdom, with plans to commence drone-based package deliveries in an additional U.S. city by the end of 2024.
Amazon will soon be naming the cities where this new service will be available and is working with the regulators. It’s worth mentioning that Amazon has already been delivering packages utilizing its Prime Air drone delivery system in an hour or less in Lockeford, California and College Station, Texas.
The company is taking measures to boost orders on its platform, and fast delivery is central to its strategy. During the Q2 conference call, Amazon CEO Andrew Jassy said, “When we make faster delivery promises on a detail page, customers purchase more often, not just a little higher, meaningfully higher.”
Jassy added that over 50% of Prime members received orders within one or two days in the second quarter. Furthermore, Amazon significantly broadened the selection of products eligible for free shipping for Prime members. As Amazon is taking steps to encourage its customers to make recurring purchases and buy more, let’s look at what the Street recommends for AMZN stock.
Is Amazon Stock Expected to Go Up?
Amazon stock has gained about 52.5% year-to-date. Despite this considerable growth, the company’s efforts to cut costs and enhance profitability could further increase its share price. Moreover, Amazon is integrating AI (artificial intelligence) into its AWS’ (Amazon Web Services) suite of services, which could help the company maintain its leadership in the cloud space.
These initiatives provide a solid foundation for growth, which reflects in analysts’ bullish outlook on AMZN stock. With 41 Buys and one Hold recommendation given in the past three months, Amazon stock has a Strong Buy consensus rating. Further, the average AMZN stock price target of $176 implies 37.36% upside potential from current levels.
