Citi suggests buying AMZN due to potential benefits of acquiring TikTok in the U.S.

From Yahoo Finance: 2025-04-03 12:53:00

Amazon made a bid for TikTok in the U.S., leading Citi to recommend buying AMZN on weakness, citing significant benefits from acquiring TikTok. TikTok Shop generated $9 billion GMV in the U.S. in 2024, potentially boosting Amazon’s ad business. Despite this, some parties involved in the talks do not take Amazon’s bid seriously.

Other potential acquirers of TikTok US include AppLovin and a consortium of Oracle, Blackstone, and Silver Lake. Amazon’s stock has dropped 9% in the last month and 17% in the last three months. While AMZN shows promise, AI stocks may offer higher returns in a shorter timeframe. Check out the report on the cheapest AI stock for more information.

Read more: Citi Reportedly Tells Investors to Buy AMZN Stock on Weakness