Jefferies sees long-term margin upside for Amazon from warehouse automation, noting only 40-45% of its US fulfillment centers are highly automated. The brokerage expects heavy capital spending on automated centers and delivery infrastructure to cut labor costs amid wage inflation and expand the third-party parcel network. Amazon shares traded at USD 262.71 as of Oct 22, 2026, near a 52-week high of USD 284.02, with one-day change of +0.03%. Q3 results are due October 29 after Q2 AWS growth of 37% and backlog of $496 billion.
According to pluang.com, Jefferies sees room for Amazon to lift retail margins by deepening warehouse automation and widening its logistics network, noting that only 40-45% of the company’s US fulfillment centers are currently highly automated.
Automation Headroom Remains Large
The brokerage’s case rests on the gap between Amazon’s current automation level and full deployment. With fewer than half of its US fulfillment centers classified as highly automated, the company retains substantial room to raise efficiency and pare labor costs as wage inflation persists, according to the report carried by pluang.com.
Jefferies expects Amazon to direct significant capital expenditure toward automated centers and delivery infrastructure. That spending is aimed at expanding the company’s third-party parcel delivery network and improving profitability, even as grocery delivery remains a challenge for the retail operation.
The combination of automation-driven cost savings and the existing growth of AWS is expected to support Amazon’s margin outlook, the source states.
Share Price Sits Near 52-Week High
Amazon shares were trading at USD 262.71 on Pluang as of Oct 22, 2026 at 03:02 WIB, close to the 52-week high of USD 284.02 and well above the 52-week low of USD 198.79.
The stock’s one-day change was minimal at +0.03%, which the source describes as a sign of stable investor sentiment despite the company’s continuing investment in logistics automation.
Market participants hold Amazon shares for an average of 128 days, with order activity nearly balanced at 54% sell and 46% buy, a split the source reads as cautious optimism about margin expansion prospects.
Earnings and Bond Demand in Focus
Amazon is scheduled to report third-quarter earnings on October 29, following a strong second quarter in which AWS grew 37% year over year and backlog reached $496 billion, according to the source.
Third-quarter revenue guidance of $197-$202 billion appears soft, mainly because Prime Day sales shifted into the prior period, though AWS growth and capital expenditure plans impressed, the source notes.
Separately, BlackRock CIO Rick Rieder flagged a rare chance for investors to earn more than 7% yields from high-quality investment-grade bonds with short durations and low default risk, favoring paper from major tech hyperscalers including Alphabet and Amazon.
Source: pluang.com
Compiled from international media by the SCI.AI editorial team.
