Key Takeaways
- Goldman Sachs reaffirms strong conviction on Amazon with a $325 price objective, highlighting Q1 as a robust quarter with unit growth reaching post-pandemic highs.
- Amazon shares declined 1.7% in premarket hours to $262.82 on May 15.
- TD Cowen maintains its Buy recommendation with a $350 price objective, emphasizing Amazon’s new ultra-fast 30-minute grocery delivery expansion.
- The company introduced Amazon Now with 30-minute grocery delivery across Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle, with plans for nationwide expansion.
- In 2025, Amazon shipped 8 billion items via same-day or next-day delivery, representing a 30% annual increase, with grocery items accounting for half the volume.
Amazon (AMZN) shares retreated in premarket activity on May 15, declining 1.7% to $262.82, despite receiving renewed bullish endorsements from two prominent Wall Street investment firms.
Goldman Sachs reaffirmed its high-conviction Buy rating following a comprehensive analysis of Amazon’s first-quarter financial results and CEO Andy Jassy’s latest annual letter to shareholders. Analyst Eric Sheridan maintained his 12-month price objective of $325 per share.
Sheridan characterized the first quarter as exceptionally strong, noting that unit growth reached levels not seen since the COVID-19 pandemic. The surge was primarily driven by everyday essentials, which outpaced growth in other product categories. The firm also acknowledged meaningful progress in expedited delivery capabilities and quick commerce initiatives.
According to Goldman’s analysis, investor focus will continue centering on three critical factors: global consumer spending patterns, advertising services expansion, and developments in the AI landscape. Sheridan specifically identified AWS margin evolution and the monetization of AI project backlog as essential metrics for tracking future performance.
During the earnings presentation, management emphasized artificial intelligence adoption across product discovery, logistics optimization, and advertising platforms, while confirming expectations for an intensive capital reinvestment phase.
Amazon Now: Ultra-Fast Grocery Delivery Takes Center Stage
TD Cowen independently reaffirmed its Buy rating alongside a $350 price target, concentrating on a distinct growth driver — Amazon’s newly launched 30-minute grocery delivery offering.
Amazon Now debuted on May 12, providing thousands of fresh grocery products and household essentials with delivery in 30 minutes or less. The service currently operates in Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle.
Prime subscribers pay $3.99 per delivery for orders exceeding $15. Standard customers are charged $13.99. Amazon has announced intentions to expand the service to dozens of additional metropolitan areas in coming months.
This initiative extends an already substantial delivery network. Throughout 2025, Amazon fulfilled 8 billion orders via same-day or next-day shipping — a 30% year-over-year increase. Grocery and essential items represented half of that total volume.
Jassy noted that the accelerated same-day delivery strategy helped Amazon secure its position as the nation’s second-largest grocery retailer in 2025.
TD Cowen Consumer Research Supports Grocery Growth Narrative
TD Cowen’s proprietary consumer research revealed that 36% of shoppers purchased groceries online within the preceding 30 days as of Q4 2025 — matching the peak penetration rates observed during the pandemic.
This finding carries significant implications, suggesting that online grocery purchasing behavior has become permanently embedded rather than fading as a temporary pandemic phenomenon. Amazon is strategically positioning itself to capture an expanding share of this market.
Amazon reported revenue of $742.78 billion in its most recent reporting period, marking a 14% year-over-year increase. The stock has appreciated 17% year-to-date and was trading near its 52-week peak of $278.56 prior to the premarket decline.
The company also recently unveiled Alexa for Shopping, an AI-powered personalized shopping assistant embedded across its mobile application, website platform, and Echo Show devices, engineered to deliver customized product suggestions based on individual purchase history.
Twenty-five financial analysts have recently increased their earnings projections for the company’s upcoming reporting period.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
