Morgan Stanley Reports Amazon's Transition to Robots in Warehouses Could Save Up to $4 Billion Annually
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Source: CNBC
Amazon's Automation Plans: Amazon aims to replace 600,000 jobs with robots and automate 75% of its operations, potentially saving $2 billion to $4 billion annually by 2027, according to Morgan Stanley.
Impact on Employment: The shift towards automation could eliminate over 160,000 U.S. jobs, with cost savings of approximately 30 cents per item shipped, leading to an estimated $10 billion in savings.
Robotics Advancements: Amazon has introduced a new robotic system called 'Blue Jay', which can perform multiple tasks and currently handles about 75% of items stored in its warehouses.
Stock Performance and Analyst Outlook: Despite a slight decline in stock value this year, analysts remain optimistic about Amazon's growth, particularly in its cloud computing and retail sectors, with a price target suggesting a potential 35.1% increase.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 268.460
Low
175.00
Averages
280.01
High
325.00
Current: 268.460
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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