Amazon's Retail Revival: Same-Day Delivery Expansion Could Boost Profit Margins

Amazon's stock performance has been underwhelming over the past year, logging a mere 6.5% gain year-to-date despite strong company performance.

Investor Danny Vena believes the focus on Amazon's AI efforts and capex spending is misplaced, citing plans to expand its retail empire through same-day fulfillment centers.

Vena estimates that Amazon will spend $7 billion this year and next to establish more than 1,000 such facilities, which would put a center within 10 miles of 80% of Prime customers by 2031.

According to Vena, faster delivery creates a 'virtuous cycle' where customers visit more often and buy more products, potentially increasing profit margins.