AMZN
Amazon’s not just shopping for speed
Bank of America analyst Justin Post says Amazon could massively expand its same-day delivery network through a plan dubbed Project Mercury. Translation: the company wants to make getting toothpaste and vitamins at lightning speed feel a lot less like a Walmart superpower and a lot more like an Amazon feature.
The setup is simple. Amazon has about 85 sub same-day fulfillment facilities today, and the report says it may want to push that past 1,000 by 2031. Those sites stock about 90,000 of the chain’s fastest-moving items, from household basics to Fresh products to medicines. If that happens, your Prime box may show up before you’ve even finished doomscrolling.
Why Walmart’s sweating a little
Walmart’s edge has long been geography. With roughly 5,000 stores doing double duty as mini distribution hubs, it can get fast delivery within 10 miles of 90% of the U.S. population. Amazon’s plan could narrow that gap, with Bank of America estimating its same-day reach could get within 10 miles of 80% of U.S. Prime members by 2031.
That doesn’t mean the economics are a home run right away. Post said the direct financial return looks modest, and Amazon’s proposed $6.8 billion three-year investment may only become cash-flow positive around 2030. But strategically? It could be a big deal. In retail, speed is basically the plot armor.
The investor takeaway
Post reiterated a Buy rating and a $320 price target, arguing that denser fulfillment plus automation could keep Amazon’s retail margins improving for years. And he’s not stopping at packages — he also pointed to AWS, chips, and Bedrock as part of Amazon’s broader AI upside.
Big picture: sometimes the smartest move isn’t flashy revenue today; it’s quietly building the delivery moat so deep your rival starts looking like they’re running a marathon in flip-flops.