Amazon Named Top Large-Cap E-Commerce Pick by BofA

Amazon (AMZN) is a top Large-Cap pick for US eCommerce, according to a Benzinga report that cites Bank of America, due to its projected share gains, margin expansion from robotics, and ability to leverage its Prime user base to build a strong Agentic AI position. The bank reiterated its "Buy" rating for Amazon and Chewy, citing the growth of Amazon's grocery business and its potential to drive AWS acceleration.

Amazon (AMZN) remains a top Large-Cap pick for US eCommerce, according to Bank of America, due to its projected share gains, margin expansion from robotics, and ability to leverage its Prime user base to build a strong Agentic AI position. The bank reiterated its "Buy" rating for Amazon and Chewy, citing the growth of Amazon's grocery business and its potential to drive AWS acceleration.

The grocery business, which includes Whole Foods Market and Amazon Fresh, has shown remarkable growth, contributing significantly to Amazon's overall revenue. According to the latest quarterly earnings, Amazon's grocery sales increased by 20% year-over-year, driven by increased demand for home delivery services. This growth is expected to continue as Amazon expands its grocery offerings and improves its delivery infrastructure.

Additionally, Amazon's ability to leverage its Prime user base to build a strong Agentic AI position is another key factor cited by Bank of America. The company's investment in AI and robotics has led to margin expansion and improved operational efficiency. Amazon's robotics division, Amazon Robotics, has developed advanced technologies such as the Amazon Picking Bot and the Amazon Sorting Bot, which have significantly improved the company's order fulfillment capabilities.

Furthermore, Amazon's cloud computing division, AWS, is expected to benefit from the growth of its grocery business. As Amazon expands its grocery offerings, it will require more computational power and storage, which can be provided by AWS. This growth in demand for AWS services can drive further acceleration and revenue growth for the company.

Bank of America also cited the recent investment in Chewy (CHWY) as a positive sign for Amazon's future growth. Chewy, an online pet supply retailer, has seen increased demand for its products, driven by the growth of pet ownership and the increasing disposable income of consumers. Amazon's investment in Chewy is expected to provide a new revenue stream and further expand the company's eCommerce footprint.

In conclusion, Amazon's projected share gains, margin expansion from robotics, and ability to leverage its Prime user base to build a strong Agentic AI position make it a top Large-Cap pick for US eCommerce, according to Bank of America. The growth of Amazon's grocery business and its potential to drive AWS acceleration are expected to drive further growth and revenue for the company.