In a report released today, Justin Post from Bank of America Securities reiterated a Buy rating on Amazon (AMZN – Research Report), with a price target of $257.00.
Justin Post has given his Buy rating due to a combination of factors that highlight Amazon’s strategic advancements in AI technology and cost-effective solutions. Amazon’s introduction of the Nova Act, an agentic AI model, showcases its commitment to enhancing automation and efficiency in web-based tasks, which could significantly benefit its retail operations. Additionally, the launch of the AI-powered Interests tool further strengthens Amazon’s position in personalized shopping experiences, potentially driving increased customer engagement and sales.
Moreover, Amazon’s AI models, such as Nova, have been demonstrated to offer similar accuracy to competitors at a much lower cost, making them attractive options for businesses. The cost-effectiveness extends to Amazon’s hardware solutions, with Trainium chips offering substantial savings over traditional GPUs. These strategic moves not only enhance Amazon’s competitive edge but also align with its long-standing strategy of reducing costs to stimulate demand, reinforcing the Buy rating.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Post has an average return of 21.7% and a 65.25% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $250.00 price target.