Online retailer extraordinaire Amazon (AMZN) has been fighting the Federal Aviation Administration (FAA) for drone deliveries for years. But apparently, it is getting closer to that goal, as it recently rolled out its latest drone. The new drone has “double the range and half the noise,” noted a PYMNTS report. Investors were not charmed, though, and shares were down fractionally in Thursday afternoon’s trading.
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It is called the MK30 drone and recently landed FAA approval to start delivery in October. But it took around a month for Amazon to actually put it into service, which it did in Arizona and Texas. More specifically, at locations near the fulfillment center in Tolleson, Arizona. The drone can deliver items weighing five pounds or less and can work in conditions ranging from light rain to full sun.
It boasts “redundant flight-critical systems” to ensure continuous operation and can even detect aircraft or other obstacles to ensure safety. This is the latest step in Amazon’s efforts to deliver 500 million packages by drone system by 2030 and represents a key step in accessing things like perishables delivery. With the current goal of “sub-one-hour delivery,” it is easy to see how a drone would be part of achieving that goal.
Thank Your Driver and Warhammer News
Meanwhile, Amazon is bringing back a popular feature for the holidays. Known as “Thank Your Driver,” Amazon has several tools—from an Alexa connection to your Amazon account—to allow you to offer your driver a small tip, paid for by Amazon. The tip is $5, but given what Amazon drivers go through, it might mean quite a bit.
Finally, Amazon has also set up a new deal with Games Workshop to start up an adaptation of the Warhammer universe. The current agreements are for the science fiction version, Warhammer 40,000, but a new license option allows it access to the fantasy equivalent, Warhammer. Merchandising rights are included, noted a Wall Street Journal report, but production could take “…a number of years.”
Is Amazon a Good Long-Term Investment?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 54.64% rally in its share price over the past year, the average AMZN price target of $240.83 per share implies 4.7% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
