Bank of America Adjusts Amazon Stock Forecast Following Leaked Delivery Expansion Plan
Bank of America analyst Justin Post maintained a 'buy' rating on Amazon (AMZN) stock with an updated $320 price target after internal documents revealed the company's ambitious same-day delivery expansion plan, codenamed Project Mercury. The leaked plans show Amazon intends to expand its Sub Same-Day fulfillment centers from 85 locations to over 1,000 by 2031, aiming to bring a facility within 10 miles of 80% of U.S. Prime subscribers. The $6.8 billion investment is part of Amazon's broader retail capital budget and aligns with its strategy to close the delivery gap against Walmart (WMT), which leverages its existing store network for fast deliveries. While Post acknowledged limited direct financial impact, he emphasized the strategic importance of same-day delivery in maintaining competitive advantage. The move reflects a long-term infrastructure play by Amazon that could reshape e-commerce logistics and influence customer expectations around speed and convenience.
Topics: Amazon delivery networks e-commerce competition investment research Walmart