Amazon (AMZN) stock ended Tuesday up 2% after the company announced its plan to close its Amazon Fresh physical stores. The e-commerce giant will close its Amazon Fresh and Amazon Go stores to focus on delivery services and expanding Whole Foods. AMZN stock is up 6% so far in 2026.
“While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” the company said in the release. The company added that it plans to open more than 100 new Whole Foods locations over the next few years, including through an expansion of its smaller footprint option, Whole Foods Market Daily Shop.
Amazon Stock Forecasts Revised
Compared to rival Walmart (WMT), Amazon has been the superior performer on the stock market in 2026. Amazon’s analysts mostly agree on a positive outlook, with stock price targets significantly higher than the current $244.29 market price. Current analyst price targets for AMZN range from $244 to $340. Cantor Fitzgerald recently reiterated an Overweight rating with a price target of $260. Meanwhile, Wedbush and B of A Securities maintain a Buy rating on the stock. Furthermore, the average Amazon stock price target of $294.45 per share implies 25.65% upside potential from current levels.
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On the other hand, some downsides could deflate Amazon (AMZN) stock. Amazon will reportedly execute another wave of layoffs next week, per a recent Reuters report, targeting approximately 30,000 jobs. The report bumped AMZN stock down a few ticks, but that was reversed by the news of its focus on deliveries and Whole Foods.
Furthermore, Amazon has reached a settlement valued at more than $1 billion to resolve claims that it failed to properly refund customers for their returns. The settlement includes more than $600 million already distributed or soon to be paid in refunds, plus additional funds that will be paid out to affected consumers.
