Mizuho analyst Jeremy Scott says the Wall Street Journal's report that Amazon.com (AMZN) is dropping its restaurant delivery platform in the U.S. underscores his view that the market will eventually consolidate to two-to-three players. The shuttering of the platform doesn't necessarily mean that Amazon won't eventually invest in the space, but it at least temporarily removes the "existential threat of an aggressive organic expansion" and, in turn, positions the company as a potential acquirer, Scott told investors yesterday in a research note. He believes Amazon's recent investment in U.K. delivery company Deliveroo signals the company continues to actively participate in the space. Grubhub (GRUB) is likely an attractive takeover target, says Scott. However, the analyst continues to believe there are more effective combinations for Grubhub that can better enable the company to "carve an inside track of restaurant-centric, enterprise solutions." He keeps a Buy rating on Grubhub shares with a $100 price target. The stock closed yesterday up 8%, or $5.33, to $70.06.

Wedbush analyst Scott Devitt raised the firm's price target on Amazon.com to $225 from $220 and keeps an Outperform rating on the shares ahead of quarterly results. The firm thinks Amazon is well positioned this year with multiple drivers of sustainable margin expansion in place. The company has reported operating income ahead of Street estimates for five consecutive quarters, and Wedbush estimates Q1 operating income of $11.6B, approximately 5% above consensus. Heading into results, the firm is looking for sustained advertising momentum given positive feedback from advertisers in its Q1 Digital Advertising Survey and from digital advertising agencies, accelerating AWS growth and incremental commentary on AI-related demand, and ongoing improvements in both North America and International retail margins.

Citi analyst Ronald Josey raised the firm's price target on Amazon.com to $235 from $215 and keeps a Buy rating on the shares. The analyst "materially" raised operating income projections on Amazon following an analysis of the company's Advertising and Retail businesses. Citi now projects operating income to reach 10% margins in 2025 on continued advertising strength and improving retail efficiencies. Given faster shipping speeds, the firm believes conversion rates are improving as Amazon's retail business benefits from its regionalization approach with shorter transport distances as the overall cost to serve comes down. Amazon remains one of its top picks across the internet sector.

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Shares of Instacart (CART) are underperforming on Tuesday after Amazon (AMZN) announced its own grocery-delivery service, ramping up competition in an already crowded market. Commenting on the... To see the rest of the story go to thefly.com. See Story Here

Gordon Haskett notes that Amazon (AMZN) has announced a low-cost grocery delivery subscription program for EBT users as well as Prime members. The news has hit Hold-rated Instacart (CART) particularly hard, with shares down as much as 7% on Tuesday, which the firm believes is "a bit overdone" - but not enough for Gordon Haskett to turn bullish as it thinks investors have long thought of Amazon as a fierce competitor and expected it to take share from Instacart over the long run. Additionally, it's worth noting that Instacart has a deep roster of grocery stores on its platform and has been accepting EBT payments since 2020, the firm adds.

Meta Platforms (META), the parent company of Facebook, Instagram, WhatsApp, Oculus, Threads and other brands, is scheduled to report first quarter 2024 results after market close on Wednesday, April 24 with a conference call scheduled for 5 pm ET. Here's what to... To see the rest of the story go to thefly.com. See Story Here

In a post to its website, Amazon staff said, "Later this year, Amazon customers in the West Valley Phoenix Metro Area can receive Prime Air drone deliveries from our Tolleson, AZ Same-Day Delivery site. Since starting drone delivery in College Station, Texas and Lockeford, California in 2022, we've delivered thousands of items to customers in less than an hour. Last year we also began delivering prescription medications in partnership with Amazon Pharmacy to customers in College Station. We've received great feedback from customers and communities as we've rolled out the service. We're now adding a new location and entering into the next stage of the program's evolution. Later this year, drone deliveries are coming to the West Valley of the Phoenix Metro Area in Arizona...As we look to the future and prioritize our resources to continue growing the program, we've also made the decision to close our delivery site in Lockeford. We'll offer all current employees opportunities at other sites, and will continue to serve customers in Lockeford with other delivery methods. We want to thank the community for all their support and feedback over the past few years. We'll continue delivering in College Station, Texas and will open further U.S. locations in 2025." Reference Link