Amazon.com Inc. (NASDAQ:AMZN) shares are trading lower on Tuesday. The firm announced that it is expanding its "Amazon Now" service, offering delivery of groceries, household essentials, and other items in 30 minutes or less across dozens of U.S. cities.

Following the announcement, TD Cowen analyst John Blackledge reiterated a Buy in the stock, maintaining a $350 price forecast.

The expansion underscores Amazon's strategic push to enhance delivery speed and capture a larger share of online spending.

  • Prime Member Deliveries: Over 13 billion same-day or next-day deliveries globally in 2025.
  • U.S. Fast Deliveries: More than 8 billion items delivered in the U.S., up over 30% from the previous year.
  • Consumer Preferences: Over 95% of shoppers prefer free standard delivery over paying extra for faster shipping.

Udit Madan, senior vice president of Amazon Worldwide Operations, emphasized the convenience of the service, stating that "Amazon Now is for when you need or want the convenience of getting your Amazon order delivered in 30 minutes or less." The service leverages smaller fulfillment locations positioned closer to customers to achieve rapid delivery times.

Amazon Now

This move comes as Amazon faces increasing competition from other retail giants. Walmart Inc. (NASDAQ:WMT) has been testing new store-based fulfillment systems in Dallas to reduce delivery times, while Target Corporation (NYSE:TGT) is expanding its same-day fulfillment through its Shipt platform.

These efforts reflect a broader industry shift toward "instant commerce," where speed is crucial for capturing online consumers.

Despite the push for faster delivery, the cost remains a challenge. Many consumers still prefer free standard shipping, highlighting the balance retailers must strike between speed and cost-effectiveness. The expansion of "Amazon Now" aims to address these challenges by optimizing logistics and leveraging Amazon's extensive network.

Amazon Technical Analysis

Amazon.com, Inc. (AMZN) is currently trading above its key moving averages, which suggests a bullish trend in the longer term. The positioning of the 20-day SMA above the 50-day SMA indicates positive momentum, while the 50-day SMA is above the 200-day SMA, reinforcing the overall bullish outlook.

The RSI is currently at 59.38, which is considered neutral, indicating that Amazon.com, Inc.’s stock is not in overbought or oversold territory. This level suggests that there is still potential for upward movement without immediate concerns of a price pullback.

MACD is below its signal line, indicating bearish pressure on the stock’s momentum. Traders should be cautious as this could signal a potential weakening in the current bullish trend.

Key support is at 226.50, while resistance is seen at 278.50. If Amazon.com, Inc.’s stock approaches support, it could indicate a potential reversal or trend change, while a breach of resistance may signal continuation of the upward trend.

The golden cross in May, where the 50-day SMA crossed above the 200-day SMA, adds to the bullish sentiment surrounding Amazon.com, Inc. This crossover typically indicates a strengthening trend, suggesting traders should watch for further price appreciation.

Looking at the 12-month performance, Amazon.com, Inc. has gained 37.17%, reflecting strong upward momentum over the past year. This performance highlights the stock’s resilience and potential for continued growth in the longer term.

AMZN Price Action: Amazon.com shares were down 2.19% at $266.08 at the time of publication on Tuesday, according to Benzinga Pro data.

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