Amazon Resilient Despite Agentic Commerce Rise
Rosenblatt Securities has downplayed concerns over Amazon's (AMZN) advertising business being threatened by agentic commerce, saying they are 'overstated'.
The analyst, Scott Devitt, maintained a Buy rating and raised the price target from $335 to $360.
Devitt noted that personal agents and AI shopping assistants have caused the discovery and purchase funnel to shrink, but this has led to speculation that Amazon's retail media model is at 'risk of complete displacement'. However, he believes the company should be able to navigate this period of transition without significant impact.
Amazon keeps most of the transaction and fulfillment value even when it doesn't control the discovery layer. Early results from Amazon putting sponsored placements inside its agentic flows have been encouraging.