Amazon Stock AMZN Eyes All-Time High as Investors Back Fresh Grocery Delivery
A significant push for food delivery, positive analyst comments, and rekindled investor confidence are all helping Amazon shares recover...
Quick overview
- Amazon shares are gaining momentum after a slow start to 2025, driven by a grocery delivery expansion and positive analyst feedback.
- The stock recently broke past $230, with a target of reaching its all-time high of $242.06.
- The company's aggressive grocery delivery service aims to reach 2,300 cities by year-end, enhancing the value of Prime memberships.
- Institutional interest is rising, with hedge fund Third Point increasing its stake in Amazon, adding to the bullish sentiment.
Live AMZN Chart
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A significant push for food delivery, positive analyst comments, and rekindled investor confidence are all helping Amazon shares recover from a sluggish start to the year.
From Tepid Performance to Breakout Momentum
For much of 2025, Amazon’s (AMZN) stock lagged behind other major tech names. The first half of the year saw virtually no gains, even as a popular Magnificent 7 ETF climbed. The turning point came despite a brief stumble in late July, when shares fell $25 following Q2 earnings. Although results beat expectations, cautious forward guidance and waning post-earnings enthusiasm kept sentiment subdued.
AMZN Chart Weekly – The 50 SMA Held As Support
That mood has shifted in recent weeks. This week, AMZN broke past $230, helped by strong buying interest and a rebound from its 50-week simple moving average just above $210. The next target for bulls is the February all-time high of $242.06, now within striking distance. Thursday’s 3% gain extended Wednesday’s rally, pushing year-to-date performance to just over 5%, ranking fifth among the seven largest U.S. tech companies.
Grocery Expansion Sparks Buying Interest
The latest catalyst came from Amazon’s announcement that it will aggressively expand its fresh grocery delivery service. The company plans to reach 2,300 cities by year-end, offering same-day delivery to more than 1,000 of them. For Prime members, the $9.99 grocery delivery add-on has been scrapped — now, orders over $25 receive free same-day delivery. Non-Prime customers can access the service for $12.99.
The move is widely seen as a direct challenge to major retailers and delivery platforms, including Walmart (WMT). Morgan Stanley analysts applauded the initiative, noting that U.S. grocery spending represents roughly $1.5 trillion annually, with about 45% coming from fresh and perishable goods. They warned that without this push, Amazon risked ceding market share in a lucrative and competitive sector. Enhanced grocery delivery could also boost the perceived value of Prime memberships.
Hedge Funds Add Fuel to the Fire
Investor interest isn’t limited to retail traders. Hedge fund Third Point disclosed in its Q2 13F filing that it boosted its AMZN stake by 15.3%, bringing its total holdings to 2.7 million shares. This institutional vote of confidence comes at a time when momentum is already building, adding another layer of bullish sentiment.
Outlook: With technical momentum on its side, institutional backing, and a new growth avenue in groceries, Amazon is well-positioned to challenge its all-time high in the coming sessions. Whether it can sustain this rally may depend on execution in its grocery strategy and broader consumer spending trends — but for now, the market seems firmly on Amazon’s side.
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