E-commerce giant Amazon (AMZN) is reportedly exploring a $15 billion expansion of its U.S. warehouse network, with plans to build around 80 new logistics facilities across both urban and rural areas, according to Bloomberg. Sources say that the company has asked potential investment partners to submit their proposals. Furthermore, most of the sites would serve as delivery hubs, though some will house large, robot-equipped fulfillment centers.
While Amazon hasn’t officially commented, the report noted that these expansion discussions began before President Trump’s latest tariff announcement, and it remains unclear whether or not the new trade policies will affect Amazon’s plans. The move points to a renewed focus on logistics infrastructure, which could help the company manage last-mile delivery and speed up order fulfillment.
Interestingly, it is worth noting that if completed, this expansion would be a major shift in Amazon’s investment priorities. In fact, in recent years, the company has scaled back spending on its retail division after ramping it up during the pandemic. Instead, it has funneled more resources into Amazon Web Services (AWS) and artificial intelligence. However, a new push into logistics suggests that Amazon may now be looking to strengthen its e-commerce operations in response to growing demand.
Is Amazon Stock Expected to Rise?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $264.16 per share implies 54% upside potential.
