Amazon's Advanced Robotics Push Could Save $10 Billion Annually For Jeff Bezos' E-Commerce Giant By 2030, Says Morgan Stanley Amazon's Advanced Robotics Could Save $10B Annually By 2030, Predicts Morgan Stanley - Amazon.com (NASDAQ:AMZN)

Amazon.com Inc. AMZN could potentially save over $10 billion annually by 2030 through its new robotics technology, according to an analyst.

What Happened: According to Morgan Stanley analyst, Brian Nowak, Amazon’s new robotics technology could lead to significant cost savings. The analyst estimates that every 10% of Amazon’s U.S. units moving through the new robotics warehouses could generate $1.5 billion to $3 billion in savings.

Nowak also suggests that the base case robotics penetration could reach 30% by 2030, potentially leading to annual efficiencies of over $10 billion. The analyst highlights that over the past 12 years, Jeff Bezos‘ e-commerce giant has been advancing its robotics technology, unveiling six major new robotic designs since 2022.

These robots are built to improve efficiency at multiple stages of the order fulfillment process, including storage, inventory management, picking and packing, sorting, and outbound operations. Given that fulfillment costs make up nearly 20% of Amazon’s retail revenue, automation could significantly impact the company’s long-term EBIT potential.

Why It Matters: Earlier, Amazon’s growth potential was also highlighted by Wall Street analysts, who pointed to the company’s AWS, Robotics, and Prime Video Ads as key drivers. Needham analyst Laura Martin reiterated a Buy rating on Amazon and a $250 price target. At the same time, BofA Securities analyst Justin Post maintained a Buy rating on Amazon with a price target of $255.

Amazon is set to report its earnings on Feb. 6 after market close. The stock was up 0.58% during the premarket trade on Tuesday.

Analysts have set a consensus price target of $254.15 for Amazon, based on ratings from 41 experts tracked by Benzinga Pro. The latest evaluations came from Telsey Advisory Group, JMP Securities, and Scotiabank on Jan. 31, Jan. 30, and Jan. 24, respectively. These three firms assigned an average price target of $288.67, suggesting a potential 20.89% upside for Amazon from their assessments.