The Rise of Contactless Delivery and What It Means for Logistics
As consumers began prioritizing hygiene and convenience, delivery tracking evolved from a 'nice-to-have' to a critical component of logistics. Today, logistics providers are rethinking last-mile operations, driven by new customer expectations and digital capabilities.
This article explores what contactless delivery is, why it's here to stay, and how it's transforming logistics—from local drop-offs to international shipping.
Contactless delivery is a fulfillment method where couriers deliver items without requiring direct interaction with the recipient. Unlike traditional delivery that often involves signatures or hand-to-hand exchange, contactless delivery uses: GPS-verified drop-offs
One-time PINs (OTP)
Photo confirmation via mobile apps
These changes were rapidly adopted during the pandemic but are now standard practice across package delivery services. E-commerce retailers, food delivery apps, and third-party logistics companies alike have embedded contactless delivery into their standard workflows.
Example: Amazon's 'Photo on Delivery' feature and UPS's signature-waiver policies are now widely accepted across urban and suburban markets.
What began as a temporary response to a global health crisis has become a long-term consumer preference. Customers now expect safety, speed, and convenience with every delivery.
Key drivers: Safety and hygiene: Customers want minimal physical contact.
Customers want minimal physical contact. Digital convenience: Mobile apps and push notifications make contactless delivery seamless.
Mobile apps and push notifications make contactless delivery seamless. Efficiency: Couriers save time by avoiding waiting or collecting signatures.
Benefits for logistics operations: Reduced handling and faster delivery cycles
Fewer failed deliveries
Better customer reviews and loyalty
These changes support the rising demand for fast delivery, especially in urban centers where time windows are tight.
Example: Instacart and DoorDash both saw a permanent shift to contactless options even after lockdowns eased, proving the model's staying power.
The shift toward contactless fulfillment has forced delivery companies to retool operations and adopt smarter systems.
Operational adjustments include: No-signature drop-offs using GPS and photo proof
using GPS and photo proof OTP delivery codes to ensure secure receipt
to ensure secure receipt Mobile confirmation systems integrated with customer apps
Fleet management has also evolved. Route optimization software now accounts for unattended deliveries, minimizing delays and improving drop efficiency.
Companies like Serene Transports have embraced these changes by integrating app-based confirmations and contactless proof of delivery, ensuring both customer safety and operational efficiency.
Example: FedEx's Delivery Manager system enables recipients to leave specific instructions, skip signatures, and receive real-time notifications.
Modern consumers expect deliveries to be: Seamless
Transparent
Real-time
What customers value: Accurate ETAs
Instant delivery confirmation
Easy-to-access tracking through mobile apps
A delivery company that cannot meet these expectations risks losing loyalty. Real-time notifications and location tracking are no longer differentiators—they're expected features.
Example: Shopify's Shop app provides real-time updates from multiple retailers, showing how delivery experience is becoming a key part of customer retention.
While contactless delivery is common in domestic logistics, implementing it globally presents unique challenges.
Key issues: Customs and regulatory compliance
Language barriers and localization of delivery instructions
and localization of delivery instructions Infrastructure readiness for real-time updates across borders
Adapting contactless systems in cross border trucking requires smart compliance with customs protocols and seamless digital communication. Logistics tech providers must invest in globally interoperable systems to support cross-border efficiency.
Example: Flexport and DHL use mobile and cloud-based tools to manage international proof of delivery and customs paperwork with minimal manual intervention.
Looking forward, the contactless model is expected to evolve further with emerging technologies.
Key future trends: Drone and autonomous vehicle delivery for low-contact, high-speed shipping
for low-contact, high-speed shipping AI-powered route planning to reduce delays and fuel use
to reduce delays and fuel use Integration with smart home systems—like smart door locks, parcel drop boxes, and IoT-connected garages
The model also offers long-term sustainability benefits by lowering failed deliveries, cutting paper waste, and enabling leaner logistics.
Example: Walmart is testing smart garage deliveries in partnership with Level Lock, showing how contactless delivery can integrate directly into homes.
Contactless delivery has transformed from a pandemic-era workaround into a core logistics capability. It offers speed, convenience, and transparency—all of which are underpinned by robust delivery tracking systems.
As logistics becomes more customer-centric and digitally driven, businesses that invest in contactless models will lead the way in speed, satisfaction, and scalability.
Those who delay digital transformation risk being left behind in a logistics environment that demands agility, visibility, and trust.
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Yahoo
26 minutes ago
- Yahoo
Big Tech is power-hungry, and America's aging grid can't keep up
For more than a decade, the demand for power across the US has been nearly stagnant, growing by less than 1% per year. Then came the data center revolution. The world's largest tech companies are waging a power-driven arms race to be at the forefront of the computing and AI technology wave. These so-called hyperscalers — including tech giants like Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), and Oracle (ORCL) — have poured money into pushing artificial intelligence development and computing ability ever further. In turn, US electricity demand has exploded and is projected to grow five times faster over the next 10 years than it did in the previous decade, according to research from Bank of America (BAC). And these companies are showing no signs of slowing down. "The large data center developers and their hyperscaler customers want power right away," said Rob Gramlich, president of electricity infrastructure consulting firm Grid Strategies. But America's tech industry may be overestimating just how much pressure the power grid can take — and how quickly the nation's utilities will actually be able to meet the rampant demand. Aging infrastructure well beyond its useful life, decades of stagnant industrial investment, and years-long delays in getting new power connected to the grid may put a wrench in Big Tech's plans. In some of the country's most important markets, this "misalignment of expectations" could equal a lag of at least one to two years, if not longer, before the power that data center developers are seeking is actually available, according to a July report by clean energy fuel cell provider Bloom Energy (BE). Closing that gap, according to eight different analysts, researchers, and energy traders who spoke with Yahoo Finance, will require a long lead time, an intensive amount of new energy infrastructure development, and an enormous amount of capital. In the meantime, the ramifications are likely to be widespread. Stress on the grid is sending Americans' electricity bills higher, and the US is losing ground to foreign competitors looking to host the new generation of computing hubs that hold and process data generated by some of the most powerful companies in the world. Michael Dunne, the chief financial officer of energy utility operator NextEra Energy (NEE), called out the excess demand on the company's earnings call in July: "There is an outrageous amount of need for energy infrastructure in this country that's going to go well past the end of this decade." Dunne's company stands to benefit. Power play Across the globe, a web of thousands of data centers is springing up, from 'Data Center Alley' in Loudoun County, Va., to Richland Parish in the northeastern corner of rural Louisiana and Kolkata, India, and it forms the backbone of the AI and cloud-computing industries. Global power usage by data centers is expected to grow from a current level of around 55 gigawatts to 84 gigawatts — equivalent to the power usage of roughly 70 million homes — in only the next two years, according to research from Goldman Sachs. And the biggest names in tech are only increasing their plans for more. In December, Meta (META) announced plans to spend $10 billion building the largest data center hub in the Western Hemisphere, 250 miles north of New Orleans. The site, which Meta chief Mark Zuckerberg has said will be bigger than the island of Manhattan, is expected to come online in 2030. This year, Amazon, Alphabet, Microsoft, and Meta alone are expected to spend $364 billion in capital expenditures, much of it going toward AI technology development. But the increasing demand from data centers that each require a power draw equivalent to thousands of homes is running up against an aging and largely stagnant North American grid, threatening stability. "The size and speed at which large data centers, typically developed to support the computing needs for AI and cryptocurrency mining, are expanding across the country" represents a "significant near-term reliability challenge," according to research from the North American Electric Reliability Corporation (NERC), a nonprofit deputized by the federal government to regulate the power grid. To understand the problem, you have to understand how the grid works. At a basic level, electricity follows a roughly three-step process to reach a home, a data center, or any other endpoint. A power source, such as the Linden Cogeneration Plant that lights up the night sky outside New York City or the soaring towers of Georgia's nuclear Vogtle Electric Generating Plant, generates energy. That energy is then transmitted across power lines that crisscross the country. Once it reaches its destination, the electricity is distributed to the tangle of smaller lines that many Americans see running through their communities and that carry it to its final destination. The generation sources, such as coal plants and solar farms, determine capacity, or how much power is actually available for use. And the market is already capacity-constrained. "We've grown accustomed to several decades of pretty slow demand growth in the electric sector, and the last few years have really turned that on its head," Brendan Pierpont, the director of electric modeling at the research organization Electric Innovation, told Yahoo Finance. The gap has already begun to push tech developers to look abroad. While the US still claims the dominant share of data center power markets globally, the rest of the world is gaining ground. The Asia Pacific region has seen the lion's share of added power supply over the last decade, according to Goldman Sachs research. Beijing is now the world's second-largest market for hyperscaler power capacity, only behind the US's northern Virginia region, according to reports from Synergy Research Group. To be sure, North America is projected to have the largest amount of new power coming online in the next five years out of any global region. But fresh development takes a long time. On the shorter end of the spectrum, Goldman Sachs utilities analyst Carly Davenport told Yahoo Finance, a company like NextEra could likely bring a solar or wind facility into service within 18 to 24 months. But if the goal is to bring on serious capacity through a project at the scale of a gas plant, where new builds on average have added four times the capacity of a new solar build, or a much larger capacity nuclear power plant, the timeline is much longer. In the meantime, hyperscalers may have to find other answers. "If you are deciding today that you want to build new gas, you likely will not be able to take delivery of a turbine until 2029," Davenport said. "If you're wanting to build new nuclear, that's something that we think is more [of] a mid-2030s type event to actually get that online." And once a new generation resource is built, it often has to sit in a years-long queue just to get connected to the grid. At PJM Interconnection, the grid operator of the largest power market in the US, the process to get grid-connected takes five years on average, according to the Lawrence Berkeley National Laboratory. Only around a fifth of the generation projects that requested grid connection between 2000 and 2018 were in commercial operation by 2023, the Laboratory found. The $800 billion push Work on the infrastructure that brings power from source to destination — the transformers and power lines running throughout the country — has also remained largely stagnant. Thirty-one percent of transmission equipment and 46% of distribution equipment in the US are within five years of the end of their useful life or have already passed that point, according to research from Bank of America. Across the country's electric utilities, which deliver energy to customers and maintain the infrastructure required to do so, two-thirds of 2024 spending went toward replacing existing infrastructure, the bank found. And the pace of new grid development has been slowing down. The US built an average of 1,700 miles of transmission infrastructure per year through the first half of the 2010s, but the back half of the decade saw only 645 miles built on average per year, according to Grid Strategies. To be sure, data centers are also not the only things pulling on the grid. Electrification mandates, electric vehicle development, and other power-hungry technologies like cryptocurrency mining all continue to exert pressure on a strained grid. "I think what's happening is sort of refocusing to people, 'Hey, we have these assets that are now approaching 30 to 40 years [of operation], and not only do you need to replace them, you need to upgrade them," Bank of America industrials analyst Andrew Obin told Yahoo Finance. "If you run the grid without real money for 20 years, things start to break." In response, the utilities industry is not sitting still. GE Vernova (GEV), which supplies equipment to customers including AI and cloud-computing data center developers, utilities companies, and industrial-scale power projects, saw its orders for power-related equipment increase by more than 40% in Q2 2025 compared to Q2 2024, according to the company's latest earnings report. The company has received $500 million in orders specifically for data center electrification this year, compared to $600 million throughout all of 2024, CEO Scott Strazik said on the earnings call. But meeting the growing need will require an immense amount of both capital and labor. Utilities are now expected to spend $800 billion over the next five years, compared to only $550 billion spent between 2020 and 2024, Goldman Sachs' Davenport told Yahoo Finance, and the US is projected to need to add more than 500,000 jobs by 2030 in the electric sector. Market stress Each year, PJM holds a capacity auction to determine the lowest pay-rate energy producers are willing to accept from the grid operator to guarantee that they will be ready to provide power at any time during the delivery period covered by the auction, usually several years out. In this summer's auction, generators offered an additional 2,669 megawatts of power supplies to be added through infrastructure upgrades and new builds. It was the first time in the past four auctions that new capacity was added. But the additions only meet around half of the demand PJM is expecting to see over the coming three years. That impact will show up in Americans' electricity bills. In PJM's 2024 auction, the utility's clearing price — the end price that determines what it has to pay all participating power generators — was $269.92 per megawatt-day, an 800% increase from the previous year. That December, after utilities companies warned customers in PJM-covered Pennsylvania that monthly bill prices could increase by $15, Governor Josh Shapiro filed a lawsuit against PJM, claiming the grid operator's poor processing capabilities had harmed customers and created "potentially the largest unjust wealth transfer in the history of U.S. energy markets." In response, PJM filed a proposal with the Federal Energy Regulatory Commission to create a price collar for the coming auctions that was accepted and put into effect. This year's auction saw prices clear levels more than 20% higher, at $329.17 per MW-day, which is the price cap established by the PJM proposal. This is expected to raise consumers' electric bills in PJM's coverage area — 13 states across the mideast region of the country plus Washington, D.C. — by 1.5%-5%, on average, according to the operator. This effect is not constrained to only the country's biggest or fastest-growing markets. If a developer cannot find power in one market or is unwilling to accept proposed timelines, several experts told Yahoo Finance, it will go elsewhere until it finds a market that suits its needs. "The stress on every grid from increased electricity demand doled out by data center clusters is noticeable," Brad Jones, managing partner of power-trading specialist hedge fund Standard Normal, told Yahoo Finance. "We are really and truly seeing it everywhere." Aaron Tinjum, the vice president of energy at the Data Center Coalition trade association, which counts Amazon, Microsoft, Alphabet, Meta and Oracle as members, told Yahoo Finance that while the industry has largely tried to "right-size infrastructure and minimize any unnecessary costs, the data center industry has also experienced the acute impacts of under-forecasting and insufficient communication" that have created "multi-year project delays in key data center markets." "While we recognize that grid planning and management is ultimately the role of utilities, grid operators, and regulators, the data center industry has been actively leaning in as a committed and engaged partner across the country to help advance and accelerate grid modernization and energy infrastructure to support American economic competitiveness and national security," Tinjum said. Over the long term, US capacity is largely expected to meet demand, Davenport told Yahoo Finance. The NERC has projected that several hundred gigawatts of capacity from new generation are expected to arrive within the decade. But in the meantime, the gap between supply and demand has pushed the biggest tech players to search for other solutions. In March 2024, Amazon Web Services announced a deal worth $650 million with power producer and energy infrastructure operator Talen Energy (TLN). In return for that sum, Talen is set to provide Amazon with more than 19 gigawatts of energy from its Susquehanna Steam Electric Station, one of the largest nuclear plants in the country, to power a data center site directly adjacent to the plant. Then in September 2024, Microsoft inked a deal with Constellation Energy (CEG) to purchase power that Constellation plans to generate by bringing one of two reactors at the decommissioned Three Mile Island nuclear plant back online by 2028. Electricity Innovation's Pierpont told Yahoo Finance that he expects hyperscalers and other large tech players to increasingly pursue deals like Amazon's and Microsoft's as they look at how much power they can generate themselves on-site — especially as data center development shows no signs of slowing down. Alphabet recently announced on its Q2 earnings call that data centers and networking equipment made up a full third of its $22.4 billion in capital expenditures for the quarter, while Microsoft said it will spend $80 billion by the end of the year to "build out AI-enabled datacenters to train AI models and deploy AI and cloud-based applications around the world." "Helping accelerate growth while also making sure we pay our fair share for the electricity to serve our operations is critical for Google," Alphabet said in a statement provided to Yahoo Finance. "Our priority is to help responsibly scale grid systems, making them more reliable, resilient and affordable for everyone." Amazon implied on its Q4 2024 earnings call that it will spend around $63 billion on capex in the second half of 2025, and Oracle predicted in its Q4 earnings call that the "vast majority" of its projected $25 billion-plus in capex will be spent on "equipment that is going into data centers and not for land or buildings." 'We work closely with utilities and grid operators to plan for future growth," Amazon said in a statement. "Where we require specific infrastructure to meet our needs (such as new substations), we work to make sure that we're covering those costs and that they aren't being passed on to other ratepayers." Tech players have begun to announce initiatives to ease some of the burden of their grid draw. Google recently signed agreements with two US utilities to operate a "demand response" model for its data centers that can "shift or reduce" power during peak demand times, which the company said will help to get new developments grid-connected more quickly, reduce the need for new capacity, and make it easier for operators to better manage power grids. But activist groups like the Southern Environmental Law Center (SELC) say they haven't seen the tech players live up to their claims. "As state regulators respond to growing demand, the data center industry has demonstrated a lack of transparency about their energy use and an unwillingness to aggressively push for state and federal policy that would unlock barriers to the clean energy and transmission infrastructure needed to meet their stated goals," SELC climate initiative leader Alys Campaigne told Yahoo Finance. SELC has threatened Elon Musk's xAI with lawsuits over its Colossus data center project in Memphis that activists say involved installing gas turbines without proper permitting. SELC has also worked with other activist groups to block data center developments. Microsoft, Meta, and Oracle did not respond to requests for comment. For its part, the energy industry is likely to push back plans to retire existing gas and coal plants that can provide steady capacity, even if they are at or near the point of decommissioning, Goldman Sachs' Davenport and Bank of America's Obin told Yahoo Finance. "You could push those [retirement timelines] out and to the right to a degree to try to bridge the gap," Davenport said. "They're not getting pushed out to the right by 10 years, but could you see two, three-year push-outs? I think that's absolutely reasonable." The industrial sector is also likely to push harder on existing infrastructure that might not be operating at its full capacity limit, Obin said. And regulators such as the Federal Energy Regulatory Commission are finding ways to step in, including by forcing PJM to reform its grid connection queue process to make sure new energy resources like the more than 100 GW of solar capacity currently in its pipeline can get plugged in more effectively. In the meantime, as the grid works to grow and manage increased loads, the major tech developers will be forced to adapt, the experts who spoke with Yahoo Finance said. If renewable energy sources such as new solar and wind developments remain stuck in connection pipelines, some companies may join xAI in looking toward non-renewable solutions like gas turbines that they can quickly bring online. "A lack of capital is not the most pressing bottleneck for AI progress," Dan Dees, Goldman Sachs' co-head of global banking and markets, said in a report from the bank on AI's energy demand. "It's the power needed to fuel it." Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Politico
28 minutes ago
- Politico
After BLS firing, Trump leaves clean-up job to successor
Fed Chairman Jerome Powell also frequently praises the quality of U.S. economic data, but in a June appearance before the House Financial Services Committee, he warned of 'very mild degradation of the scope of the surveys.' 'The direction of travel is something I'm concerned about,' he said. 'I don't like to see the kind of stories I'm reading, the idea being that the data is going to become more volatile and less reliable.' The quality of that data has shown growing signs of strain since Trump returned to the White House. Trump's federal hiring freeze has made it harder for the bureau to restaff its data collection and processing teams, even though key BLS positions were excluded from DOL's buyout offer. The bureau has eliminated hundreds of indices that measure wholesale prices, and BLS stopped collecting data in smaller markets like Provo, Utah, and Buffalo, N.Y. In the rest of the country, the number of price inputs used to calculate the consumer price index — one of the primary gauges for inflation — has declined by about 15 percent. 'I don't know how you address that because you're not allowing them to hire people to replace the attrition,' said Omair Sharif, president of the firm Inflation Insights. 'This person coming in has got a huge, huge challenge because they're starting off behind the eight-ball from a credibility perspective.' The White House has terminated voluntary boards that had advised the agency on statistical methodology and how economic changes could affect data-collection efforts and analysis. And Trump's budget proposes transferring BLS over to the Commerce Department, bundling it with two other statistical agencies. That worrisome trend has dovetailed with a yearslong drop in response rates that accelerated after the pandemic — putting into question the effectiveness of such a foundational methodology for BLS. Potential solutions — including shifts that would allow participants to self-administer a key survey used to measure unemployment — are underway. But Trump's heavy-handed reaction to a negative jobs report risks undercutting that progress, said Susan Houseman, a senior economist at the Upjohn Institute for Employment Research who had previously chaired the agency's Technical Advisory Committee. 'Criticizing — with no basis — the BLS and other statistical agencies for fabricating numbers can have very bad effects on response rates,' she said. 'This kind of talk really can damage that and further undermine data quality.' To be sure, resource constraints predate Trump. One White House official granted anonymity to speak frankly about the administration's thinking said that the BLS has had 'clear problems with the reliability and accuracy of its employment statistics since the start of Covid.' A Labor Department official granted anonymity to describe what contributed to McEntarfer's ouster told POLITICO that agency leadership was repeatedly kept in the dark about cutbacks BLS made due to financial constraints and did not respond to offers to find solutions.
Business Insider
4 hours ago
- Business Insider
Why Wall Street is Wrong About Amazon's (AMZN) Stock Dip
What a ride it's been! After a steady climb from April's lows to what looked like a new all-time high, Amazon stock (AMZN) got slammed on strong volume, following its Q2 earnings report, as investors reacted to cautious guidance and concerns over heavy AI-related spending. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. But take a closer look, and the results tell a different story. Amazon delivered strong performance across domestic and international retail, AWS, and profitability. And at current levels, the stock still looks reasonably valued. That's why I'm staying Bullish with a view of buying the dip in AMZN stock. Retail Keeps the Engine Humming Investors tend to focus all their attention on AWS when assessing Amazon, yet its retail business, both in North America and internationally, showed some serious muscle in Q2. North America sales climbed 11% year-over-year to $100 billion, while the international segment surged 16% to $36.8 billion (11% when adjusted for currency swings). The company's 4-day 'Prime Day' event was a blockbuster, setting records for sales and new Prime sign-ups, proving Amazon still dominates in the e-commerce space. Notably, CEO Andy Jassy highlighted more thoughtful inventory placement, which cut delivery times and boosted customer satisfaction. Internationally, Amazon's pushing hard with same-day delivery expansions, reaching smaller cities and rural areas, which is paying off with faster growth than in North America. The deployment of AI across the shopping experience also appears to be bearing fruit. The company's AI-driven tools, such as a generative AI that reads product reviews aloud, are stimulating faster decision-making during shopping. It's very endearing that despite being a pretty mature business at this point, Amazon's retail arm isn't only growing but also continuously evolving, which, in my view, positions it for further market share gains, particularly as competitors like Temu face tariff challenges. AWS: The Cloud Keeps Soaring Of course, AWS remains the crown jewel, raking in $30.9 billion in Q2, up 17.5% from last year. Now look, this figure wasn't as impressive as the blistering growth of Microsoft's Azure (39%) or Google Cloud's (32%), but at the end of the day, AWS is still the big dog in cloud computing, with a $189 billion backlog signaling long-term demand. Jassy emphasized new AI offerings like Bedrock AgentCore and partnerships with heavyweights like PepsiCo (PEP) and Airbnb (ABNB), which are leaning on AWS for their cloud needs. Last week's earnings call also highlighted an interesting aspect of AMZN's business: custom silicon, such as its 'Trainium' custom AI chips, that have 'impressively emerged as the backbone for Anthropix newest generation cloud models,' according to Jassy. The CEO also noted that most IT spending still happens on-premise, but as companies shift to the cloud (especially for AI), AWS is poised to ride that rising trend. And despite some margin pressure from heavy AI investments, AWS's operating income still hit $10.2 billion, proving it's still a cash cow. Profitability Spikes Higher Speaking about operating income, Amazon's total operating income for the quarter jumped 31% to $19.2 billion, blowing past the $16.7 billion that analysts expected. North America's operating margin hit 7.5%, up 190 basis points, while the international segment's margin soared to 4.1%, a 320-basis-point leap. Advertising was a star here, with revenue up 22% to $15.7 billion, driven by sponsored products and new partnerships with Roku (ROKU) and Disney (DIS). More innovative logistics played a significant role, too. By optimizing inventory placement, Amazon effectively slashed outbound shipping costs while boosting delivery speeds, with unit growth outpacing shipping cost growth by a wide margin. CFO Brian Olsavsky also pointed to robotics and automation in fulfillment centers, which are driving down costs while handling higher volumes. In my view, these efficiencies, paired with high-margin businesses like AWS and ads, are turning Amazon into a leaner, meaner profit machine. Value Still Shines Despite AMZN's Guidance Jitters Last week's market tantrum was rather revealing. Amazon's Q3 outlook implied sales 10-13% growth and operating income of $15.5 billion to $20.5 billion, slightly above analyst midpoints but not the blowout some hoped for. Investors also seem to be nervous about the $100 billion AI spending spree and potential tariff impacts, which could squeeze margins if costs are passed to consumers. Jassy admitted tariff uncertainty is a wildcard, but I think that Amazon is diversifying its supply chain to keep prices low. In any case, I believe that at 33x this year's expected EPS, Amazon's stock looks rather reasonably priced against its growth trajectory. With AI investments set to fuel long-term growth in AWS and retail, this dip feels like a buying opportunity for patient investors. In the meantime, with EPS expected to grow between 15% and 20% per annum at least over the medium term, today's multiple offers a decent margin of safety, in my view. What is the Price Target for AMZN in 2025? There are 45 analysts offering price targets on AMZN stock via TipRanks — with an overwhelming bullish consensus. Currently, the stock carries a Strong Buy consensus rating based on 44 Buy and one Hold ratings over the past three months. At $265.16, AMZN's average stock target implies almost 25% upside over the next twelve months. Amazon's Post-Earnings Dip Means Attractive Prices Despite the post-earnings sell-off, Amazon's Q2 results reflect solid execution—strong retail growth, continued AWS dominance, and profitability firing on all cylinders. While cautious guidance and AI-related spending gave the market pause, the underlying numbers paint a much more positive picture. With a valuation that still looks reasonable and analysts projecting double-digit upside, this pullback could be a compelling opportunity to get in on a stock well-positioned for long-term growth.
