From TipRanks: 2024-06-29 01:01:44

Amazon’s stock soared to a $2 trillion market cap, riding on strong growth drivers like AI. The stock has surged 85% in two years and is recovering from a 55% drop in 2022. With consumer and enterprise spending bouncing back, Amazon looks set for a successful second half.

Amazon is upgrading Alexa with generative AI enhancements to rival Apple’s technology. The firm may introduce a fee for these services, challenging Apple’s free use of Apple Intelligence. The development of AI is also improving productivity in Amazon’s finance divisions, suggesting further advancements in consumer-facing innovations.

Amazon is set to launch a service offering cheap Chinese goods, competing with Shein and Temu. The company’s focus on quick shipping could give it an edge over Chinese rivals who face delays. Despite facing challenges, Amazon’s entry into this space is seen as low-risk and high-growth potential.

Analysts rate Amazon stock as a Strong Buy, with all 42 analyst ratings recommending a Buy. The average price target is $221.68, implying a 14.7% upside potential. With the recent breakout and AI advancements, Amazon may have more room to grow, especially with the new e-commerce business targeting Chinese competition.



Read more at TipRanks: Amazon Stock (NASDAQ:AMZN): The Run to a $3T Market Cap Is On