AI-powered shopping could become a new growth driver for Amazon. Evercore expects the stock to rise 33%.
According to an Evercore survey, 36% of users began making more purchases after AI features were introduced to the Alexa voice assistant / Photo: Shutterstock.com / bluestork
Shopping with an AI assistant could serve as an additional catalyst for growth in Amazon's retail business, according to an Evercore analyst. More and more shoppers are using the Alexa assistant to search for and purchase products, and many have started buying more since connecting it.
Details
Evercore raised its price target for Amazon shares from $315 to $355, according to CNBC. This target implies a 33% upside relative to the closing price on August 28. Analyst Mark Mahaney reaffirmed his “buy” rating on the company’s stock.
“The results of our survey showed for the first time that agent-based AI does indeed have an additional positive impact on Amazon’s retail business,” the analyst wrote. According to him, 36% of respondents reported that they began buying more after AI features were introduced in the Alexa voice assistant. And 57% of users said they purchased items they hadn’t known about before. Agent-based AI allows systems to perform tasks independently, including searching for products and making purchases without direct human involvement, explains CNBC.
Evercore noted that Amazon remains the most popular online retail platform: 92% of survey respondents reported using it. Walmart, the largest supermarket chain in the U.S., ranks second with a 58% share.
What about the stocks?
Amazon's stock rose 4% at the close of trading on August 28. Since the beginning of the year, it has gained about 15% in value.
Most on Wall Street share Evercore’s optimism: 68 out of 70 analysts recommend buying the company’s stock, according to MarketWatch. The remaining two advise holding the position. The average price target is $330, which is 24% above the current price.
This article was AI-translated and verified by a human editor
