A potential tie-up between Amazon (AMZN) and TikTok’s U.S. operations draws fresh attention from Wall Street, with Citi’s top analyst highlighting several compelling synergies. Citi sees strong potential for multiple strategic benefits if Amazon successfully acquires TikTok’s U.S. operations. Amid this backdrop, five-star-rated analyst Ronald Josey at Citi reiterated his Buy rating on AMZN stock, predicting a 53% upside from current levels.
Citi Sees Huge Potential for Amazon on TikTok Deal
According to Citi, TikTok Shop, along with the platform’s strong influencer ecosystem, could enhance Amazon’s product discovery capabilities. Notably, TikTok Shop generated approximately $9 billion in gross merchandise volume in 2024. Meanwhile, Citi highlights TikTok’s massive U.S. audience of 170 million monthly active users, who spend over 70 minutes daily on the platform. This presents a significant opportunity for Amazon to expand its advertising business, enhance engagement with younger consumers, and strengthen its footprint in digital media.
Additionally, Josey advises investors to capitalize on Amazon’s recent share price dip following tariff concerns, emphasizing that the company remains well-positioned for long-term growth. Overall, AMZN stock has lost over 12%, primarily due to Trump’s newly announced tariffs and their potential impact on Amazon’s vast global supply chain.
The e-commerce and cloud giant is competing for TikTok alongside other major bidders, including a consortium led by OnlyFans founder Tim Stokely and mobile technology company AppLovin (APP). Trump said the TikTok deal would be finalized before Saturday’s (April 5) deadline.
Is AMZN a Buy Right Now?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $269.33, the Amazon average share price target implies an upside of 51% from the current level.
