Amazon stock to jump 50% over next year thanks to 1-day delivery

Amazon’s stock could jump nearly 50 per cent over the next year thanks to its planned roll out of Prime One-Day Shipping.

RBC Capital Markets believes that its drive into rapid deliveries could generate an extra $24 billion for the already dominant retailer.

Amazon stocks have now been upgraded to an “outperform” rating, and its price target has jumped to $2600 per share, well above its current $1,776.29 per share representing a rise of around 46 per cent.

READ MORE: Amazon to spend nearly $1bn halving Prime delivery times

One-day shipping, which Amazon said in April it planned to spend $800 million expanding to all of its Prime customers in the US, is expected to dramatically increase Prime subscriptions and increase revenues by between seven and 15 per cent.

“We believe (Amazon) may well generate accelerating revenue & unit growth for some time as One-Day goes nationwide & worldwide,” RBC analyst Mark Mahaney stated.

“With one-day as the catalyst, we now model sustained revenue growth acceleration and raise (2020 estimated) revenue to $337 billion.

“We believe that once Amazon builds an even greater loyal user base with free one-day delivery, the industry may have to follow, again.”

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