Amazon Ad Model Seen as Resilient Despite Rise of AI Shopping Agents

Rosenblatt Securities has raised its price target for Amazon (AMZN) to $360, citing confidence in the company's ability to navigate changes in consumer behavior. The firm's Buy rating and increased price target imply a potential upside of about 46% from yesterday's closing price of $246.67.

The concern driving Rosenblatt's analysis is that personal AI agents and shopping assistants may compress the path from product discovery to purchase, potentially displacing Amazon's retail media model and impacting its advertising business.

Rosenblatt argues, however, that this narrative is 'false' and that the perceived disruption risk is overstated. The firm points out that Amazon has successfully weathered previous secular shifts in consumer behavior and is confident it can adapt to this new trend as well.