Amazon.com has announced a plan to shutter its Amazon Fresh and Amazon Go stores as part of a strategic reallocation of resources toward areas expected to drive future growth. Wedbush responded by maintaining an Outperform rating on the stock and keeping a $340.00 price target, calling the decision "an important step forward in Amazon's broader strategy" that should help the company gain share in perishable grocery categories where it has had difficulty competing.
Analysts and market watchers note that Amazon has struggled to displace established grocery operators when it comes to perishables, even as groceries remain a central offering for major rivals such as Walmart, Target, and Costco. Wedbush highlighted the closures as a way to concentrate investment on channels and formats where Amazon believes it can improve its competitive position.
As part of the new retail approach, Amazon is moving to expand its Whole Foods network. Wedbush said the company plans to open more than 100 Whole Foods locations over the next few years, representing an acceleration of its physical retail footprint. In parallel, Amazon is exploring the development of a physical supercenter format that would provide a broad assortment across grocery, household essentials, and general merchandise in a manner similar to Walmart's approach.
Investor attention has also turned to near-term financial expectations. BofA Securities projects Amazon's fourth-quarter revenue at $213 billion and operating income of $26 billion, results the firm says exceed Street consensus. Separately, Stifel moved its price target to $300 while retaining a Buy rating, and BofA lowered its target to $286 but also kept a Buy rating. Evercore ISI reiterated an Outperform rating and a $335 price target, calling out improvements in Amazon's unit-cost curve and overall cost structure.
On the contract front, Amazon won a $581 million award from the Pentagon to support the U.S. Air Force's Cloud One Program, with the engagement slated to run through work expected to be completed by December 2028. The contract adds to the company's government business alongside its broader retail and cloud initiatives.
Other corporate governance news noted alongside these developments includes Hasbro's appointments to its board of Doug Bowser, the former President of Nintendo of America, and Carla Vernón, CEO of The Honest Company. Bowser's tenure at Nintendo was credited with notable growth tied to the Nintendo Switch platform.
Together, the store closures, renewed Whole Foods expansion, analyst target revisions, and the Pentagon contract sketch a multi-pronged repositioning for Amazon across retail, cloud, and government services. Market participants will be watching the company's forthcoming earnings release and execution on store rollouts as signals of whether the strategy translates into improved market share and financial performance.