Ghazal Ahmed
2 min read
In This Article:
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 15 AI Stocks Making Waves on Wall Street. One of the biggest analyst calls on Thursday, June 12, was for Amazon. Bank of America reiterated the stock as “Buy” with a $248 price target.
The firm said that Amazon continues to innovate using AI to improve package delivery. The firm is bullish on the company’s strategic growth initiatives and operational efficiencies, with one key reason being its increased ad loads on Prime Video. These increased loads are expected to nearly double ad revenues by 2025, boosting high-margin growth.
Moreover, Amazon’s restructuring of its grocery business is also likely to boost year-over-year margin growth. Even though it has a smaller market share compared to competitors, integrating Whole Foods under its broader umbrella is viewed as a positive step towards growth and customer retention.
Finally, the company’s efforts in artificial intelligence for package delivery are destined to improve efficiency and reduce costs. There are significant savings expected from robotics as well.
“Amazon announced three AI innovations improving delivery: 1) Wellspring, an AI-powered system that collects data from dozens of sources including satellite imagery, road networks, and prior deliveries to create a comprehensive map.”
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Buzzing AI Stocks on Latest News and Ratings and 10 Trending AI Stocks on Wall Street Right Now.
Disclosure: None.
