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Amazon's warehouse automation and logistics expansion promise long-term margin growth, says Jefferies

Market News
21 Oct 2026
Proactive Investors
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Bullish
Amazon's warehouse automation and logistics expansion promise long-term margin growth, says Jefferies

Jefferies highlights Amazon's potential to boost retail margins through increased warehouse automation and expanding its logistics network. With only 40-45% of its US fulfillment centers highly automated, Amazon has room to grow efficiency and reduce labor costs amid wage inflation. The company plans significant capital expenditure on automated centers and delivery infrastructure, aiming to expand its third-party parcel delivery network and improve profitability despite challenges in grocery delivery. These moves are expected to enhance Amazon's margin outlook alongside AWS growth.

Amazon shares are trading at USD 262.71 on Pluang as of Oct 22, 2026 03:02 WIB, close to its 52-week high of USD 284.02 and well above the 52-week low of USD 198.79. The stock's 1-day change is minimal at +0.03%, indicating stable investor sentiment despite ongoing investments in logistics automation. Market participants hold Amazon shares for an average of 128 days, with a nearly balanced order activity of 54% sell and 46% buy, reflecting cautious optimism about its margin expansion prospects.

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