Amazon.com Inc (NASDAQ:AMZN) stock is hitting new all-time highs on Wednesday amid multiple developments. Here's a look at what's going on.
What To Know: Amazon shares got a lift Wednesday morning after BofA Securities analyst Justin Post maintained a Buy rating and raised the price target from $210 to $220, citing further efficiency gains ahead for the e-commerce giant.
Post noted that Amazon made dramatic improvements in efficiency in 2023, but despite the "significant" efficiency bump last year, all five logistics utilization metrics that BofA tracks remain below 2018 levels.
Given that CEO Andy Jassy has said that efficiency can exceed 2018 levels, the analyst believes there is more runway ahead for efficiency gains from here.
Amazon shares are now breaking out above the highs it set earlier this month. The stock had seen resistance around the $2 trillion market cap level, but it broke through the milestone number in early trading Wednesday.
Wednesday afternoon, a new report from The Information surfaced indicating Amazon is preparing to launch a Temu-like discount section that will offer direct shipping from China.
The report, which cites slides shown to Chinese sellers, suggests that this will be Amazon's most aggressive response to the rise of major discount sites like Temu and Shein.
Amazon's discount marketplace is expected to offer unbranded fashion products, home goods and other daily necessities. Orders are expected to take nine to 11 days to reach customer doorsteps.
Amazon reportedly told the Chinese sellers it would begin accepting merchant sign-ups in the summer as it gears up to begin shipping discount products in the fall. The report appears to be adding fuel to the momentum in Amazon shares Wednesday.
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AMZN Price Action: Amazon shares are hovering around all-time highs. The stock was up 4.27% at $194.32 at the time of writing, according to Benzinga Pro.
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