Amazon (AMZN.O) Expands Healthcare Reach with Same-Day Prescription Delivery

Key Points

• Amazon (AMZN) launches same-day prescription delivery in New York and Los Angeles, with plans for further expansion.
• The service enhances Amazon's online pharmacy offerings and could disrupt local pharmacy businesses.
• Analysts hold a Strong Buy consensus rating on Amazon (AMZN) stock, indicating potential for continued growth.

In this news

Amazon.com Inc (AMZN) has taken a significant step in the healthcare market by launching a same-day prescription delivery service in New York City and Los Angeles, with plans to expand to over a dozen cities by the end of the year. This move builds on the company's existing online pharmacy service introduced in 2020, which already allowed customers to order prescription medications for home delivery. The new service promises to deliver medications on the same day they are ordered, marking an improvement in convenience and efficiency for customers.

The expansion into same-day prescription delivery is expected to put competitive pressure on local pharmacies, potentially reshaping the pharmacy landscape. Amazon's foray into healthcare and medicine is part of a broader strategy to leverage its logistics expertise and customer base to enter new markets. Alongside this healthcare initiative, Amazon is also developing educational tools around artificial intelligence (AI) and engaging in legal battles with the National Labor Relations Board over the use of independent contractors.

Wall Street analysts maintain a Strong Buy consensus rating on Amazon (AMZN) stock, with a price target that suggests a significant upside potential. The company's share price has already seen an impressive rally over the past year, and the expansion of services like same-day prescription delivery could further bolster investor confidence in Amazon's growth trajectory.