E-commerce giant Amazon (AMZN) will suspend its delivery service for non-Amazon packages, according to people familiar with the matter, The Wall Street Journal reports.
Amazon Shipping- a new service that was being trialed in US cities like Los Angeles- will be halted from the beginning of June, according to the report. This will allow AMZN to focus on a surge in its own customers’ orders.
In a note to shippers, seen by The Wall Street Journal, Amazon wrote “We understand this is a change to your business, and we did not take this decision lightly… We will work with you over the next several weeks so there is as little disruption to your business as possible.”
From an investing perspective, Amazon certainly has the Street’s seal of approval. TipRanks reveals a ‘Strong Buy’ analyst consensus for AMZN with 37 buy ratings in the last three months, versus just one hold rating. (See Amazon’s stock analysis on TipRanks)
Meanwhile the average analyst price target translates into 20% upside potential from current levels. Defying the general market trend, shares are currently trading up 9% year-to-date.
“Reiterate Outperform based on [RBC Capital’s] 5th Annual U.S. Grocery Survey and our view that the COVID Crisis is creating an inflection point for Online Staples/Grocery Shopping, with AMZN a key beneficiary” commented RBC Capital analyst Mark Mahaney on April 7. He has a $2400 price target on the stock.
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