Amazon stock expands into perishables, Truist maintains Buy rating

Investing.com - Amazon.com (NASDAQ:AMZN), the $2.45 trillion retail giant, has launched same-day perishable grocery delivery in over 1,000 U.S. cities, with plans to expand to more than 2,300 cities by the end of 2025, according to a company announcement Monday. According to InvestingPro data, Amazon maintains strong cash flows and operates with moderate debt levels, supporting its ambitious expansion plans.

Prime members will receive free same-day delivery on orders over $25, with a $2.99 fee for orders below the minimum threshold. Non-Prime members can access the service for a $12.99 delivery fee.

Truist Securities has reiterated its Buy rating on Amazon stock with a $250.00 price target following the announcement. The firm views the move positively as it provides Amazon with an additional growth lever in an under-penetrated market.

The expansion into perishables is expected to drive further growth in Amazon’s everyday essentials category, which outperformed the rest of the business and represented one-third of units sold globally in the second quarter of 2025.

Truist Securities noted that Amazon has focused on unlocking the perishables opportunity for several years, with the company’s expanded same-day delivery capabilities playing a critical role in the nationwide rollout of the service.

In other recent news, Amazon has expanded its same-day delivery service to include fresh groceries in over 1,000 cities and towns across the United States, with plans to reach more than 2,300 locations by the end of 2025. This initiative allows customers to order perishable items alongside millions of other products already available through Amazon’s same-day delivery service. Analysts from Telsey Advisory Group have reiterated an Outperform rating and a $265 price target on Amazon, citing the company’s strengthened position against grocery competitors. Similarly, Evercore ISI has maintained an Outperform rating and a $280 price target, highlighting the integration of groceries into the Prime ecosystem as a driver of customer engagement and lifetime value.

Meanwhile, Walmart’s stock rating was maintained at Outperform by Mizuho, despite Amazon’s aggressive grocery push. In related developments, Anthropic, an Amazon-backed company, has offered its Claude AI model to the U.S. government for $1, joining other AI startups in seeking federal contracts. This move follows Claude’s recent inclusion on the government’s list of approved AI vendors. These developments highlight Amazon’s strategic focus on expanding its grocery delivery services and its backing of AI advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.