Amazon: Alexa+ Expansion and AI-Driven Engagement Support Buy Rating and Upside Potential

Bank of America Securities analyst Justin Post has maintained their bullish stance on AMZN stock, giving a Buy rating yesterday.

Justin Post has given his Buy rating due to a combination of factors tied to Amazon’s expanding AI ecosystem and its impact on user behavior. He highlights that the new web-based Alexa+ significantly broadens the assistant’s reach beyond devices and the mobile app, allowing customers to access Amazon’s AI tools directly through Alexa.com. This expansion supports deeper customer interaction by enabling quick information queries, planning tasks, and integrating household needs such as managing smart home devices and grocery lists. Post also notes that Amazon is positioning Alexa+ as a differentiated, family-centric assistant, leveraging Amazon’s extensive customer data and relationships to deliver capabilities that management believes are not matched by competing AI tools.
Near term, Post points to evidence that the upgraded Alexa+ is already boosting engagement and monetization, including higher conversation volumes, more purchases, and substantially more grocery-related requests versus the prior Alexa version. He expects further upside as Alexa.com increases the number of touchpoints where customers can interact with Amazon’s services, helping the company defend its role as a primary starting point for AI-driven shopping against rivals like OpenAI and Google. Longer term, he sees a sizable runway as Alexa+ penetration among Prime members remains well below the total Prime base, and he views the free inclusion of Alexa+ in Prime, combined with tools like Rufus and Amazon’s strengths in pricing and delivery, as strong drivers of continued direct traffic and spending on the platform. These dynamics underpin his view that Amazon’s AI and retail advantages support the current Buy rating and the upside to his price objective.

According to TipRanks, Post is a top 100 analyst with an average return of 24.5% and a 67.60% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.

In another report released yesterday, Wolfe Research also maintained a Buy rating on the stock with a $275.00 price target.