Amazon (AMZN) stated today that it will not move forward with plans to deliver packages by drone in Italy. The decision followed a review of the project and its future fit within the market.
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Earlier this year, the company completed early drone tests in San Salvo, a town in central Italy. At the time, Amazon said the trials showed steady progress. However, the company now says the wider business rules in Italy no longer align with its goals for the program.
Meanwhile, AMZN shares moved slightly upward on Friday, closing at $232.52.
Regulatory Progress Was Not the Issue
According to Amazon, talks with Italian aviation regulators moved in a positive direction. Still, the company said other regulatory limits made long-term growth difficult.
Meanwhile, Italy’s civil aviation authority ENAC said the decision came as a surprise. The agency also noted that the move appeared linked to internal company policy and recent financial events at the group level.
As a result, Amazon has chosen to pause drone delivery efforts in Italy. Instead, the company plans to focus on markets that better support its current strategy.
Is Amazon Stock a Buy or Sell Right Now?
On the Street, Amazon is considered a Strong Buy, based on the consensus rating of 45 analysts. The average AMZN stock price target is $296.12, implying a 27.35% upside from the current price.
