Amazon (AMZN) Stock: Wall Street Analysts Raise Targets on Grocery Delivery and Cloud Expansion

Key Takeaways

• Goldman Sachs reaffirms strong conviction in Amazon, setting a $325 price target after citing robust Q1 performance with unit growth reaching post-pandemic highs.
• AMZN shares declined 1.7% to $262.82 during premarket hours on May 15.
• TD Cowen maintains Buy rating with elevated $350 price target, highlighting Amazon’s expansion into 30-minute grocery delivery service.
• The company introduced Amazon Now with ultra-fast grocery delivery in four major metro areas, with expansion to additional cities underway.
• In 2025, Amazon fulfilled 8 billion orders within same-day or next-day windows, representing a 30% annual increase, with grocery items comprising 50% of volume.

Amazon (AMZN) shares retreated during premarket activity on May 15, declining 1.7% to reach $262.82, despite receiving renewed endorsements from two prominent investment firms on Wall Street.

Amazon.com, Inc., AMZN

Goldman Sachs reinforced its bullish position on the e-commerce and cloud computing giant following a thorough analysis of the company’s first-quarter financial results and CEO Andy Jassy’s yearly letter to shareholders. Eric Sheridan, the firm’s analyst covering the stock, maintained a 12-month valuation target of $325.

Sheridan characterized the first quarter as demonstrating substantial strength. The company’s unit growth reached levels not witnessed since the pandemic era, fueled by accelerated demand for everyday necessities outpacing overall category expansion. Advancements in expedited delivery capabilities and rapid commerce initiatives also received favorable assessment.

The investment firm identified three critical focal points for investor monitoring: global consumer spending patterns, advertising services expansion, and developments in the AI landscape. Sheridan emphasized AWS profitability trends and the transformation of AI pipeline opportunities into actual revenue streams as essential metrics.

Company leadership emphasized AI momentum across product discovery, supply chain operations, and advertising platforms during the quarterly earnings discussion, while confirming expectations for an aggressive capital reinvestment phase.

Amazon Now: Ultra-Fast Grocery Delivery Initiative

TD Cowen independently maintained its Buy recommendation and $350 valuation target, concentrating on an alternative growth driver — the company’s newly unveiled 30-minute grocery delivery platform.

Amazon Now debuted on May 12, providing thousands of fresh groceries and household essentials with delivery times of 30 minutes or less. The offering is currently operational in Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle metropolitan areas.

Prime subscribers are charged $3.99 per delivery for purchases exceeding $15. Standard customers pay $13.99. Amazon intends to expand the program to numerous additional markets progressively.

This initiative leverages an already robust logistics network. The company completed 8 billion same-day or next-day deliveries in 2025 — representing a 30% year-over-year surge. Grocery and essential products accounted for half of this delivery volume.

Jassy noted that the expedited delivery strategy 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 online within the preceding 30 days as of Q4 2025 — equaling peak pandemic-era penetration rates.

This finding carries significance because it indicates online grocery shopping behaviors persisted beyond COVID-related restrictions. Consumer adoption has remained stable, and Amazon is strategically positioned to capture increasing market share.

The company’s revenue reached $742.78 billion during the latest reporting period, reflecting 14% growth. The stock has appreciated 17% year-to-date and was approaching its 52-week peak of $278.56 before the premarket pullback.

Amazon recently unveiled Alexa for Shopping, an AI-powered shopping companion embedded within its mobile application, website, and Echo Show hardware, engineered to deliver customized product suggestions based on individual purchase patterns.

Twenty-five Wall Street analysts have recently increased their earnings projections for the company’s next reporting period.

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