Think It's Too Late to Buy This Leading Retail Stock? Here's the Biggest Reason Why There's Still Time.

Key Points

• The king of online retail just announced a significant expansion in a major product category.

• This revenue-boosting initiative hasn't been factored into the stock price yet.

• 10 stocks we like better than Amazon ›

With the great run-up in Amazon's (NASDAQ: AMZN) stock price over the years, some market players could be forgiven for thinking there isn't much upside left in the shares.

I would disagree, especially considering that the company just announced a smart move to boost its business in a surprisingly traditional segment. The market barely reacted to this recent announcement; I feel the move has better potential to help its operations than many might realize.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Groceries to your door

In mid-August, Amazon announced that it was widening its same-day delivery option for fresh grocery orders made through its site. With the move, according to the retailer, customers in more than 1,000 municipalities across this country will have access to the option.

Image source: Getty Images.

For customers who are members of the company's Prime service, same-day fresh grocery delivery is to be free of charge for orders topping $25 in total in most locations. Under that minimum, a charge of $2.99 will apply. For those lacking Prime, Amazon will charge a $12.99 fee no matter the size of the order.

Such orders can comprise nearly every type of perishable food, including seafood, meat, and dairy products. The company added that organic and natural options for such products will also be available. These goods can be delivered alongside the many other products Amazon offers, the company said, and delivery can be effected within hours.

A major push

Amazon is putting its considerable weight behind this effort, and it's clearly determined to become a force in the segment. From the current level of just over 1,000 locations it aims to double the count and then some, to 2,300 by the end of the year.

The company didn't provide any estimates for how this program might impact its fundamentals. However, as it's leveraging its existing capabilities to cover the ever-durable consumer staples segment, if done right the move should boost its overall retail revenue without incurring much additional cost. I'd say that's a win for the company, and reason alone to consider buying the stock now.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,113,120!*

Now, it’s worth noting Stock Advisor’s total average return is 1,068% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.