Source: Business Insider
Wall Street is underestimating the potential revenue impact of Amazon’s move to one-day shipping, SunTrust’s analyst Youssef Squali wrote in a note Friday. Squali pointed to the revenue acceleration Amazon saw in 2005 following the launch of its two-day shipping service as evidence of shorter delivery time driving sales growth. Morningstar’s R.J Hottovy also wrote on Wednesday that Amazon’s ability to deliver quickly could lead to wider adoption of its grocery delivery service — resulting in more robust sales growth. Click here for more BI Prime stories . If past performance is any indication, Amazon’s move to shorten its delivery time by a day could lead to revenue acceleration in the coming years — and outpace Wall Street’s estimated growth rate, according to financial firm SunTrust Robinson Humphrey. In a note published on Friday, SunTrust’s analyst Youssef Squali pointed to the “strong revival” in Amazon retail business following the 2005 launch of its two-day Prime delivery program.