Amazon stock gets AI boost as Citizens reiterates $300 target

Investing.com - Citizens maintained its Market Outperform rating and $300 price target on Amazon.com (NASDAQ:AMZN) following the launch of the company’s new AI-powered advertising tool. This target aligns with the broader analyst sentiment, as InvestingPro data shows Amazon has a strong consensus recommendation of 1.3, with analyst price targets ranging up to $351.87.

The e-commerce and cloud computing giant introduced Ads Agent, an artificial intelligence assistant designed to streamline advertising campaign management for businesses using Amazon’s advertising platform. The $2.51 trillion market cap company has maintained strong revenue growth of 11.48% over the last twelve months.

The new tool automates several critical advertising functions, including audience targeting, budget allocation across different campaigns, and analytics through SQL generation, according to Citizens.

The firm noted that AI-powered automation is making campaign creation and optimization more accessible while simultaneously improving precision, scalability, and speed for advertisers on Amazon’s platform.

Citizens highlighted that these automation capabilities particularly benefit smaller businesses that previously lacked sufficient personnel resources to optimize advertising campaigns, potentially improving relative performance for small and medium-sized businesses using Amazon’s advertising services.

In other recent news, Amazon has introduced an AI-powered Amazon Business Assistant aimed at helping business buyers discover savings and make informed purchasing decisions. This new tool is available at no extra cost to U.S. Amazon Business users and offers personalized recommendations based on purchase history. Additionally, Amazon has taken legal action against Perplexity AI, demanding the startup stop using its AI browser agent, Comet, for online purchases, citing violations of Amazon’s terms of service.

Analysts have also been active in adjusting their outlooks on Amazon. Mizuho raised its price target for Amazon to $315, maintaining an Outperform rating, citing increased confidence following Amazon’s third-quarter results and a new partnership with OpenAI. Meanwhile, New Street Research increased its price target to $340, highlighting expected AWS revenue growth as a key factor. Bank of America noted that Amazon is well-positioned to capture more market share as eCommerce spending rose by 8% year-over-year in October.

These developments reflect Amazon’s efforts to enhance its business offerings and address competitive challenges while maintaining strong market positioning.

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