Amazon Stock Forecast: AI-Driven Shopping Surge Spooks Market
Amazon's stock price surged over 4% intraday on August 28 to lead gains among the Mag 7. According to Evercore ISI, a recent consumer survey shows that artificial intelligence (AI) is changing how users shop on Amazon. The firm believes agentic AI tools, such as Alexa AI, not only help consumers find intended items more quickly but may also create purchasing demand that did not previously exist.
The survey found that among users of Alexa AI shopping features, 57% reported purchasing products they were previously unaware of. Evercore ISI added that this marks the first time survey data has shown signs of agentic AI driving an 'incremental' impact on Amazon's retail business. Agent AI refers to artificial intelligence tools capable of understanding user needs, searching for and comparing products, and assisting in completing tasks such as placing orders under certain conditions.
Evercore ISI raised its price target on Amazon from $315 to $355, implying more than 30% upside from current levels. The firm believes that Amazon's existing user base, product offerings, and logistics network provide it with a competitive edge in embedding AI into the shopping experience.