The Zhitong Finance App learned that Credit Suisse analyst Stephen Ju raised the target price of Amazon (AMZN.US) from 4,000 US dollars to 4,850 US dollars before the quarterly earnings report was announced, and maintained an “outperform the market” rating.

Analysts pointed out that Amazon's spending on increasing e-commerce capacity has almost tripled, from $3 billion in Q1 2019 to $12 billion in Q4 2020 and $10 billion in Q1 2021. Part of that expenditure was used to increase the Amazon FC center area by 50%, in addition, the company also increased midrange and last-mile delivery capacity.

Analysts believe this increase in spending will allow Amazon's “one-day delivery” service to resume growth. Considering that ridesharing/food delivery operators have launched same-day delivery solutions for Amazon's white-label products, Amazon should also consider launching a faster courier service. Overall, after a period of intensive investment in production capacity, Amazon will enter a relative harvest cycle.