Amazon Intensifies Focus on North America: What is the Path Ahead?

Amazon’s AMZN North America segment continues to be the backbone of its business, playing a critical role in driving overall growth. With strong consumer demand, wide product selection and an expanding seller network, the region is helping Amazon maintain its leadership in e-commerce. In the first quarter of 2025, Amazon’s North America segment (59.7% of total revenues) generated $92.9 billion in revenues. The segment saw an 8% year-over-year growth, reflecting strong performance despite economic uncertainties. Our model estimate for second-quarter 2025 North America revenues is pegged at $97.2 billion, indicating year-over-year growth of 7.9%.To support this growth, AMZN is continuing to improve its fulfillment network across the region. The company has redesigned its inbound network to better distribute inventory across its regions, which allows it to place products closer to customers. This has helped reduce delivery times, lower the cost to serve and increase the likelihood that multiple items in a customer’s order arrive together. In the first quarter, Amazon achieved its fastest-ever speeds for same-day and next-day deliveries, helping it maintain a lead in convenience.Looking ahead, Amazon is expanding its use of automation and robotics in its operations, continuing to build out its same-day delivery network and adding more delivery stations in rural areas in the United States. These steps are aimed at reducing handling costs, improving speed and expanding reach. The company is also focused on offering low prices and great value, which remains especially important for customers given broader economic uncertainty. Together, these efforts are central to Amazon’s strategy to drive continued growth in the North America segment.Amazon Faces Stiff Competition in North AmericaAs Amazon sharpens its focus on the North America segment, competition from major retailers like Walmart WMT and Target TGT is intensifying.Walmart remodeled 40 U.S. stores in the first quarter of fiscal 2026, improved three-hour delivery coverage to 93% of U.S. households and saw a 21% jump in U.S. e-commerce sales. Additionally, Walmart has undertaken several initiatives to enhance e-commerce operations in the region, including buyouts, alliances and improved delivery and payment systems.Target is strengthening its position in North America by combining digital expansion with store investments. Target has an outstanding pipeline of new stores and is committed to ongoing remodels of existing locations. Additionally, it has been ramping up its digital solutions and strengthening delivery capabilities through services like doorstep delivery, curbside pickup, or buy online and pick up at the store.AMZN’s Share Price Performance, Valuation and EstimatesAMZN shares have gained 3.8% in the year-to-date (YTD) period, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s growth of 9.5% and 5.1%, respectively.AMZN’s YTD Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, AMZN stock is currently trading at a forward 12-month Price/Sales ratio of 3.28X compared with the industry’s 2.17X. AMZN has a Value Score of D.AMZN’s ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.32 per share, which has been revised upward by a penny over the past 30 days, indicating 7.32% year-over-year growth.Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. QuoteAmazon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks