E-commerce giant Amazon (AMZN) is being investigated by federal agencies after two of its Prime Air delivery drones crashed into a crane in Tolleson, Arizona. Indeed, this led the company to temporarily stop drone deliveries in the area. Interestingly, the crash happened around 1 p.m. EST on Wednesday, just a few miles from an Amazon warehouse, where two MK30 drones struck a stationary crane in a commercial zone. One person nearby was checked for possible smoke inhalation, though no major injuries were reported.
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Early reports from the Federal Aviation Administration (FAA) indicate that the drones were severely damaged after crashing mid-route. Furthermore, the drones were flying northeast and appeared to be in close formation when they hit the crane, which was being used for roof work on a distribution building. Both drones ended up landing in the backyard of a nearby property. Amazon spokesperson Terrence Clark said in a statement that the company is aware of the incident and is working with authorities to determine what went wrong.
Unfortunately, this isn’t the first time that Amazon has had drone issues. In fact, the company paused drone deliveries in Tolleson and College Station, Texas, in January after two crashes at its Pendleton, Oregon, test site. Those earlier crashes also triggered investigations by the FAA and the National Transportation Safety Board. However, Amazon resumed service in March after saying that it had fixed the drone software.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 43 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $267 per share implies 20.4% upside potential from current levels.
