Key Takeaways
- Goldman Sachs expresses strong confidence in Amazon with a $325 price objective, highlighting Q1 as a robust quarter featuring the strongest unit growth since the pandemic.
- Shares of Amazon declined 1.7% during premarket hours on May 15, trading at $262.82.
- TD Cowen maintains its Buy recommendation with an elevated $350 price objective, emphasizing the company’s new ultra-fast grocery delivery initiative.
- The Amazon Now service introduced 30-minute grocery fulfillment across Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle, with expansion to numerous additional markets ahead.
- In 2025, Amazon fulfilled 8 billion items via same-day or next-day delivery, representing a 30% annual increase, with grocery products accounting for approximately half.
Amazon (AMZN) shares declined modestly during premarket activity on May 15, dropping 1.7% to $262.82, despite receiving reinforced bullish assessments from two prominent Wall Street investment firms.
Goldman Sachs reaffirmed its strong conviction position on the e-commerce and cloud giant following a thorough examination of Amazon’s first-quarter financial results and CEO Andy Jassy’s yearly letter to shareholders. Analyst Eric Sheridan maintained a 12-month price objective of $325.
Sheridan characterized the first quarter as particularly impressive. Unit volume expansion reached levels not seen since the COVID-19 pandemic, propelled by everyday essential products outpacing growth in the overall retail category. Advancements in expedited delivery capabilities and quick commerce initiatives also received favorable commentary.
Goldman Sachs identified three critical areas that will command investor focus going forward: global consumer spending strength, advertising services expansion, and the evolving AI landscape. Sheridan emphasized AWS profitability trends and the transformation of AI-related backlog into actual revenue as essential metrics to monitor.
During the earnings conference call, management underscored AI momentum spanning product discovery, supply chain logistics, and digital advertising, while confirming expectations for an intensive reinvestment phase in the quarters ahead.
Amazon Now: Ultra-Fast Grocery Delivery Initiative
TD Cowen independently reaffirmed its Buy rating alongside a $350 price target, concentrating on an alternative growth driver — Amazon’s freshly unveiled 30-minute grocery fulfillment offering.
Amazon Now debuted on May 12, providing thousands of perishable grocery items and household staples delivered within 30 minutes or less. The service became available in Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle initially.
Prime membership holders pay $3.99 per delivery for orders exceeding $15. Customers without memberships pay $13.99. Amazon intends to expand the service to dozens of additional metropolitan areas progressively.
This introduction extends an already formidable delivery network. Amazon completed 8 billion same-day or next-day deliveries in 2025 — reflecting a 30% year-over-year surge. Grocery items and essential goods represented half of that volume.
Jassy noted that the same-day delivery initiative propelled Amazon to become America’s second-largest grocery retailer in 2025.
TD Cowen’s Consumer Research Supports Grocery Strategy
TD Cowen’s proprietary consumer research revealed that 36% of consumers purchased groceries through online channels during the previous 30 days as of Q4 2025 — equaling peak pandemic-era penetration rates.
This finding carries significance because it demonstrates that online grocery purchasing behavior persisted beyond COVID-19. The habit remained stable, and Amazon is strategically positioning itself to capture an enlarged share of this market.
Amazon’s total revenue reached $742.78 billion in the latest reporting period, marking a 14% advancement. The stock has appreciated 17% year-to-date and was approaching its 52-week peak of $278.56 before the premarket pullback.
Amazon also recently unveiled Alexa for Shopping, a customized AI-powered shopping companion embedded within its mobile application, website platform, and Echo Show hardware, engineered to deliver personalized product suggestions based on individual purchase patterns.
Twenty-five financial analysts have recently increased their earnings projections for the forthcoming reporting period.
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