Amazon introduces AI shopping tool Interests to enhance customer experience and increase purchase frequency

From Nasdaq: 2025-03-27 10:53:00

Amazon.com introduces Interests, an AI-powered shopping feature for personalized searches, announced on March 26, 2025. The tool translates user preferences into search queries, enhancing product recommendations. Currently available to select U.S. customers, the feature aims to expand accessibility in the coming months. Amazon’s Q4 2024 earnings report shows $187.8 billion in revenue and $21.2 billion in operating income, driven by AI innovations like Trainium2 AI chips and Amazon Nova foundation models. Interests joins Amazon’s suite of AI tools to enhance customer experience and increase purchase frequency. Google upgrades its Shopping tab with Vision Match, presenting competition for Amazon’s AI shopping tools. Amazon’s early adoption of AI technologies and vast product selection positions it favorably against competitors like Alibaba and eBay. While Amazon’s AI innovations show long-term potential, investors may consider holding positions or waiting for better entry points in 2025 due to factors like increased capital expenditures and AWS growth constraints. The Zacks Consensus Estimate for AMZN’s 2025 net sales is $697.68 billion, and earnings are projected at $6.32 per share. Amazon’s focus on customer experience and operational efficiency provides a strong foundation for growth, making holding through 2025 prudent for existing investors. New investors may benefit from waiting for potential market pullbacks to enter positions. Amazon currently holds a Zacks Rank #3 (Hold). Explore Zacks’ portfolio services with a $1 trial, offering access to picks like Surprise Trader, Stocks Under $10, and Technology Innovators. Download Zacks Investment Research’s 7 Best Stocks for the Next 30 Days for free for the latest recommendations. This article was originally published on Zacks Investment Research.



Read more at Nasdaq: Amazon Adds AI Shopping Tool Interests: Buy, Sell or Hold the Stock?