Amazon (Amzn) is one of the most prominent actions of the technique this year – and an analyst thinks that a lot of fuel can still remain in the tank.
In the new note, JPMorgan analyst Doug Anumut called the Amazon Stock Exchange his “best idea” and cited three advantages of radar that could cause efficiency and expanding of margins: regionalized logistics, robotics innovation and growing pressure in logistics (Laas).
The company repeated its overweight rating and set the price price in December 2025 of $ 240 per share, which includes more than 20% upside down from its current level.
Amazon’s shares rose in June, up to about 14% months to date and exceed the S&P 500 (^GSPC). The rally comes after investors show optimism about the advertising of the company and web services of Amazon web services (AWS). During the first quarter of Amazon, AWS revenue rose 17% while advertising revenue rose 19%. According to Yahoo Finance data, Amazon’s shares currently have a strong consensus on buying more than twenty analysts.
JPMorgan notes that Amazon quietly reconstructs its massive fulfillment network, transferring from a national model to regional. This means that customer orders are now more likely to be sources and delivered from the nearby repositories, reducing the distance and cost of delivery.
This regionalization strategy has helped Amazon deliver more than 9 billion Packages of the same day or next day in 2024, according to the note. The growth of the company unit increased by 8% from one year in Q1, exceeding delivery costs, which increased by 3%.
Amazon plans to double the network of concurrent facilities for fulfillment-the most expensive buildings in real estate foot-which can reduce delivery costs further. JPMorgan notes that there are currently about 600 US delivery stations in the United States, but they could reach as much as 1,000.
AI and automation progress can be another long -term cost savings. Potential technologies include generative delivery mapping, improved forecasting demand and advanced robots that can understand human language.
JPMorgan notes that Amazon’s following warehouses combine the fulfillment, sorting and delivery of the last mile to one location, reducing processing time to 25% and reducing the cost of the season’s peak. Over time, Amazon is expected to renovate existing warehouses with these possibilities.
Outside of its own e-commerce business, Amazon is increasingly opening its logistical infrastructure of third-party traders. This logistics model-as a service can be the main driver of revenue, similar to how AWS has become a dominant platform by selling excess server capacity. The company is already competing with the size of the UPS in delivery of the last mile.
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