New York, Jan 27, 2026, 16:18 (ET) — After-hours
Amazon.com Inc (AMZN) shares climbed 2.6% to $244.69 in after-hours trading Tuesday, following the 4 p.m. ET close. The gain came after the company announced plans to shutter its Amazon Go and Amazon Fresh stores, convert some locations into Whole Foods Market outlets, and boost same-day delivery as it deepens its grocery push. Trading volume hit roughly 37.7 million shares. (Reuters)
This shift is crucial since groceries are a repeat-purchase market. It helps keep delivery trucks busy, encourages shoppers to return to the app frequently, and offers Amazon an additional advantage beyond just discretionary retail.
Investors, already jittery over spending and margins, are now digesting this news. Amazon’s earnings report is just weeks away, with traders eager for clues on whether faster delivery and store tweaks are pushing costs higher amid a murkier consumer demand outlook.
Amazon runs 57 Amazon Fresh stores and 15 Amazon Go outlets. The company announced closures starting Feb. 1, though California locations will remain open a bit longer because of state regulations, the Associated Press reported. A few of these stores might be turned into Whole Foods branches. (AP News)
Amazon announced in a blog post that it will extend same-day delivery of fresh groceries to “many more communities” in 2026, following the addition of perishables to the service last year. The company reported that perishable grocery sales via its same-day option have surged 40-fold since January 2025. Whole Foods currently operates over 550 stores, with plans to open more than 100 new locations in the coming years. (Amazon News)
The news landed amid a market bracing for upcoming earnings and the Federal Reserve’s policy update on Wednesday. “This is a chance to gauge whether investors are comfortable ramping up” capital expenditure — funds for projects such as data centers and equipment — “to pursue the AI dream,” said Art Hogan, market strategist at B. Riley Wealth. (Reuters)
Scrutiny is most intense for megacap tech players involved in artificial intelligence. Big Tech firms, Amazon among them, plan to boost AI spending by 30% this year, pushing the total past $500 billion, according to Reuters. Investors want to see tangible returns as earnings reports come in. “Alphabet has the upper hand in the AI race,” said David Wagner, head of equities at Aptus Capital Advisors, highlighting the strength of its proprietary ecosystems. (Reuters)
Amazon’s cloud division grabbed headlines this week. Nationwide Building Society has deepened its relationship with Amazon Web Services to boost its digital services. According to Nationwide’s group COO Suresh Viswanathan, they need cloud tech that enhances customer experience “while keeping safety and security at the forefront.” Alison Kay, AWS UKI executive, added that modernizing workloads on AWS helps speed up innovation without sacrificing security and compliance. (IT Pro)
Risks remain. Closing stores can lead to one-time charges and disrupt local demand. Faster delivery also squeezes margins when order sizes stay small. On the legal front, Amazon agreed to pay $309 million and offer other benefits in a class-action settlement over returns and refunds, while denying any wrongdoing. An Amazon spokesperson said an internal review uncovered a “small subset of returns” with payment or verification problems. (Reuters)
Amazon will release its earnings on Feb. 5, followed by a conference call at 5 p.m. ET. Investors are gearing up for updates on AWS demand, retail performance, and spending forecasts heading into 2026. (Amazon News)
