Evercore ISI analyst Mark Mahaney maintained a Buy rating on Amazon today and set a price target of $280.00.
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Mark Mahaney has given his Buy rating due to a combination of factors related to Amazon’s strategic expansion and growth potential. The recent announcement of Amazon’s expansion into the same-day delivery of perishable groceries is a pivotal move, enhancing the value proposition for Prime members and potentially increasing the adoption of both the grocery category and Prime memberships. This initiative strengthens Amazon’s customer engagement by integrating a high-frequency purchase category into the Prime ecosystem, thereby increasing customer stickiness and lifetime value.
Furthermore, Amazon’s aggressive positioning against competitors like Instacart and Walmart+ is bolstered by a low free-delivery threshold, which applies pricing pressure on rivals. Additionally, the company’s $4 billion investment in expanding its delivery network aligns with its strategic goals. Mahaney also highlights potential growth catalysts such as the acceleration of AWS revenue, the rollout of Alexa+, Project Kuiper, and Amazon Pharmacy, which could significantly contribute to Amazon’s market performance. The grocery segment alone represents a substantial growth opportunity, given its size in the U.S. and global markets.