Amazon shares close higher on Tuesday, company purchases 11 Boeing 767-300 aircraft to speed up deliveries

Amazon.com Inc (AMZN) announced on Tuesday the purchase of 11 Boeing 767-300 aircraft, as the company seeks to bolster its delivery capabilities.

The jets, which include 7 from Delta Air Lines and 4 from WestJet Airlines, are expected to be introduced into Amazon’s air cargo network by 2022, the company said.

Amazon shares closed higher for the fifth time in the past ten trading sessions on NASDAQ on Tuesday. The stock went up 1.00% ($31.88) to $3,218.51, after touching an intraday low at $3,166.01 and an intraday high at $3,223.38 respectively.

In 2020, Amazon.com Inc’s stock went up 76.26%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

Amazon had in June leased 12 Boeing 767-300 converted cargo jets from Air Transport Services Group Inc, which increased its total fleet to over 80.

“Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations,” Sarah Rhoads, vice president of Amazon Global Air, was quoted as saying by Reuters.

Analyst stock price forecast and recommendation

According to CNN Money, the 45 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $3,800.00, with a high estimate of $4,500.00 and a low estimate of $3,048.00. The median estimate represents an 18.07% upside compared to the closing price of $3,218.51 on January 5th.

The same media also reported that at least 42 out of 49 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 3 – as “Hold”.