Amazon.com, Inc. (NASDAQ:AMZN) has been gradually recovering from its five-month low of $482.07, following weaker-than-expected holiday season earnings of 2015.  The stock has gained about 17% over the last three weeks and it is trading in the green territory again after a bullish report on Prime Now by Cowen & Co.

The shares soared as much as 2.94% during the market hours on Tuesday, and hit an intra-day high of $568.78. By 10:12 AM EST, it was up 1.88% at $562.89 and over 550,000 shares were traded compared to average daily trading of 6.56 million.

Cowen analyst, John Blackledge, stated that early adoption for the platform has been “impressive.” It has been 14 months since Prime Now went on air and now it is operating in 24 US markets, which are equivalent to roughly 48% of the US GDP, according to the analyst.

With Prime, Prime Fresh, Prime Pantry, and Prime Same Day, the service is a “multi-platform approach” aimed to offer greater value proposition to its subscribers, Mr. Blackledge described. It could be become an essential part in the company’s efforts to boost its share in food and beverage, consumables, and other large categories.

The research firm conducted a survey of 1,250 that shows Amazon’s strategy is working with the popularly service. In January, 25% (10 million) of Prime subscriber bought goods from good from Prime Now, which has been called “extremely impressive early penetration.”

The service could endanger local stores with its rapid delivery service, as 2/3rd of Prime Now buyers are aged between 25 and 44. Additionally local grocery stores are benefiting from large orders at the platform. 70% of subscribers buy products more than once per month and 24% of them purchase goods at least once per week.

Mr. Blackledge believes that Amazon can gain share in the US grocery market worth $1 trillion through Prime Now. Apart from grocery, Media, Electronics, Personal Care, Accessories/Apparel, Household Products, and Toys are among the popular categories. On average, a Prime Now user bought goods from four of the aforementioned categories in January 2016.

Amazon stock could quickly hit a new 52-week high through Prime Now and Amazon Web Service (AWS), which are new in their rspective industries but rapidly growing.