Key insights
- Wolfe Research reiterated an Outperform rating on Amazon (AMZN), highlighting significant growth potential from its expanding supply chain services business, which targets a $1.2 trillion addressable market. The firm's positive outlook is based on Amazon's ability to leverage excess capacity and gain market share in freight and logistics. While scaling may take several years, the expansion is expected to positively impact Amazon's revenue and operating income, aligning with upward earnings revisions from other analysts.
Investing.com - Wolfe Research reiterated an Outperform rating and $320.00 price target on Amazon.com (NASDAQ:AMZN) stock, citing growth potential from the company’s supply chain services business. The stock currently trades at $274, near its 52-week high of $278.56, and InvestingPro data suggests the shares remain undervalued with a Fair Value of $283.71, placing it among the platform’s Most Undervalued stocks.
Amazon announced Amazon Supply Chain Services on May 4, 2026. The service now includes two new offerings for non-Amazon sellers: Amazon Freight for less than truckload shipping and Global Logistics for ocean and air freight. The service provides a unified dashboard for tracking freight, distribution, fulfillment, and shipping solutions under a consumption-based pricing model.
Wolfe Research estimates the global addressable market for Amazon Supply Chain Services at approximately $1.2 trillion. The firm’s market estimates include freight at $750 billion, distribution and fulfillment at $120 billion, U.S. shipping at $200 billion, and international parcel shipping at $100 billion.
The research firm projects low single-digit percentage gains in the freight and distribution markets could add low single-digit percentage increases to its revenue and operating income estimates for Amazon. Wolfe Research expects the company to gain market share from incumbent logistics providers while improving its cost profile.
The firm noted the expansion may take several years to scale. Amazon Supply Chain Services allows the company to fill excess capacity with non-Amazon sellers while expanding its freight operations. The optimistic outlook aligns with broader analyst sentiment, as 24 analysts have recently revised their earnings upwards for the upcoming period, according to InvestingPro, which offers comprehensive Pro Research Reports on Amazon and 1,400+ other US equities.
In other recent news, Amazon has announced the appointment of Dr. Roy Schoenberg as the head of its healthcare division, effective July 1. Schoenberg, known for co-founding telehealth company American Well Corp., will bring his expertise to Amazon’s healthcare initiatives. Meanwhile, UBS has reiterated its Buy rating for Amazon, highlighting the growth outlook for Amazon Web Services (AWS) and setting a price target of $333. The firm adjusted its revenue projection methodology for AWS, focusing on core non-AI business and partnerships with companies like Anthropic and OpenAI.
Amazon also reported an investment of over £15 billion ($20 billion) in the United Kingdom for 2025, moving closer to its £40 billion investment goal by 2027. This investment includes new operational sites, expanded studio facilities, and a drone delivery trial. In another development, Delta Air Lines CEO Ed Bastian defended choosing Amazon over SpaceX’s Starlink for in-flight Wi-Fi services, citing Amazon’s broader technology offerings and lower costs. Lastly, Berkshire Hathaway revealed it has sold its holdings in Amazon while investing $2.65 billion in Delta Air Lines, marking a shift in its investment portfolio.
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