Amazon's Project Tetromino Raises Valuation Concerns Amid Automation Ambitions
Amazon.com Inc (NASDAQ: AMZN) has announced Project Tetromino, an ambitious initiative to develop automated delivery warehouses using AI and robotics. The company aims to enhance package processing efficiency by nearly 2.5 times compared to current designs.
The project will be rolled out in phases, with a $103 million pilot program in 2028 followed by five new facilities in 2029 and ten more in 2030. Total investments are expected to exceed $530 million by 2029.
GuruFocus' proprietary GF Value metric estimates Amazon's intrinsic value at $246.57 per share, indicating the stock is approximately 6.3% overvalued relative to its current price of $262.07.