BofA raised the firm’s price target on Amazon.com (AMZN) to $248 from $230 and keeps a Buy rating on the shares, citing recent Software as a Service and retail sector multiple expansion. Amazon now has over 750,000 robots assisting with 75% of customer orders, but with AI capabilities ramping, Amazon’s first twelfth generation automated fulfillment center launched in late-2024 and eight new robots just announced in May that are primarily focused on delivery station efficiencies, the robotics cycle is “early,” says the analyst, who expects Amazon to leverage robots to reduce labor dependency, increase order accuracy and improve warehouse efficiency, driving material cost savings. The firm thinks spatial awareness that enables robots to sort, pick, and pack could be a significant breakthrough for fulfilment and delivery, and expects Amazon to adopt these technologies well ahead of competitors, aided by AWS’ AI capabilities, which could increase Amazon’s competitive moats.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AMZN:
- Amazon’s Robotics and AI Advancements Drive Buy Rating with Increased Price Objective
- Amazon and Google-Backed Anthropic’s Annualized Revenue Jumps to $3B
- Amazon Faces Streaming Pressure and Innovates with ZeroOne
- New ETF Will Track Bill Ackman’s Investments
- Now Streaming: Analysts raise price targets on Netflix
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue