Amazon (AMZN) stock got a boost on Tuesday after the e-commerce company reached a new robotics milestone. It launched its millionth robot today, meaning it now has as many robot workers at its warehouses as it does humans. The company celebrated the event in Japan, where the millionth robot was activated.
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Amazon’s robot workers have been around since 2012, when the company acquired Kiva Systems and renamed it Amazon Robotics. They work alongside humans and are powered by artificial intelligence (AI) to ensure they can complete complex tasks. The robots also handle repetitive motions and heavy lifting, taking the strain off of warehouse workers.
However, with the introduction of more robots there are fewer human workers. That’s not too surprising, as Amazon CEO Andy Jassy has reduced the company’s headcount by 27,000 since he took over in 2021. While some of these cuts are warehouse-related, others are at corporate offices as AI enters the workspace.
Amazon Stock Movement and Analyst Updates
AMZN stock was up slightly on Tuesday, extending a 12-month 9.69% rally. However, the shares are flat year-to-date, largely due to the ongoing trade war and tariffs.
Even so, recent analyst coverage of Amazon is bullish:
- Five-star Evercore ISI analyst Mark Mahaney reiterated a Buy rating and raised his price target to $280 from $260.
- Five-star Bernstein analyst Mark Moerdler maintained a Buy rating and increased his price target to $235 from $230.
Is Amazon Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Amazon is Strong Buy, based on 47 Buy and one Hold rating over the past three months. With that comes an average AMZN stock price target of $242.98, representing a potential 10.75% upside for the shares.
