How Amazon’s stock can fight off the AI threat and soar 46%
Some investors worry that AI agents pose a risk to Amazon, but a Rosenblatt analyst thinks the company “can navigate this period of transition largely unaffected.”
Rosenblatt has increased its price target for Amazon.com Inc. (AMZN) shares to $360, reflecting optimism driven by advancements in artificial intelligence. The brokerage firm retained a Buy rating on the stock, signaling a significant upside potential from its current price of $246.67. Amazon's stock appears undervalued according to the firm's analysis, trading at an attractive PEG ratio of 0.22.
The company argues that the market's perception of AI as a threat to Amazon's advertising revenue is overstated and that the retail media model is not at risk of complete displacement by personal agents and AI shopping assistants. Despite past pressures, Rosenblatt remains confident that Amazon can navigate the evolving consumer behavior landscape with its advertising model largely unaffected.
The firm has raised its long-term estimates for Amazon. In addition to this stock update, Amazon announced plans to invest $3 billion in its quick-commerce business in India by 2030 and is building a new robotics-manufacturing facility in Greenwood, Indiana, set to open by 2028. Amazon has also received a license to operate low-orbit satellite telecommunications services in Vietnam and faces legal challenges in the UK.
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