E-commerce giant Amazon (AMZN) is making a big move into the car market. Over the past 18 months, the company has expanded Amazon Autos from its original partnership with Hyundai (HYMLF) to include brands such as Jeep from Stellantis (STLA), Chevrolet from General Motors (GM), as well as Mazda (MZDAY), Kia, and Subaru (FUJHF). As a result, the platform is turning into a full multi-brand marketplace where customers can browse and buy brand-new cars directly on Amazon’s website.
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Forget margin or options. Here's how the pros trade AMZNImportantly, this change is not just about adding more brands, but also about reaching more people. The service originally launched in late 2024 in 48 cities, but now the addition of popular U.S. and Asian brands makes it useful for a much larger group of buyers. However, it is worth noting that Amazon is not replacing dealerships but is instead working with them.
The platform uses a marketplace model in which local dealers list their cars, set fixed, no-haggle prices, and handle the final pickup or delivery while maintaining the customer relationship. Meanwhile, Amazon manages the online side, including browsing, financing, and checkout. This approach puts Amazon in a position to compete more directly with online car retailers and traditional listing sites, especially as it uses its large Prime member base and familiar checkout system to attract more buyers.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 43 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $284.20 per share implies 19.5% upside potential.
