Adaptimmune stock plunges after announcing Nasdaq delisting plans
On Monday, BofA Securities analysts increased the price target for Amazon.com stock (NASDAQ: AMZN) to $248 from the previous target of $230, while maintaining a Buy rating. With Amazon currently trading at $205.01 and analyst targets ranging from $195 to $305, the new target reflects growing confidence in the company’s potential. The analysts highlighted Amazon’s advancements in robotics and artificial intelligence as key factors influencing their decision. According to InvestingPro data, Amazon maintains a GREAT financial health score, supporting the analysts’ optimistic outlook.
The analysts noted that Amazon has significantly expanded its robotic capabilities since acquiring Kiva in 2012. Currently, over 750,000 robots assist with 75% of customer orders. They pointed out that Amazon launched its first 12th-generation automated fulfillment center in late 2024 and introduced eight new robots in May, primarily aimed at enhancing delivery station efficiencies. This automation drive has contributed to Amazon’s impressive revenue growth of 10.08% over the last twelve months, with total revenue reaching $650.31 billion.
According to the analysts, these developments are expected to help Amazon reduce its reliance on labor, improve order accuracy, and boost warehouse efficiency, leading to substantial cost savings. They observed that Amazon’s retail operating profit margin for 2024 stands at 5.4%, showing considerable progress since 2022. The analysts foresee long-term potential retail margins reaching 11%, driven by improvements in advertising, third-party services, and subscriptions.
The analysts also believe that the integration of robots and drones will enhance Amazon’s shipping speed advantages, potentially adding two percentage points to the company’s long-term retail margins. This development is seen as a step towards improving the profitability of Amazon’s first-party operations in a competitive AI-driven market.
In other recent news, Amazon.com Inc (NASDAQ:AMZN). is planning a significant global expansion of its data centers, with new facilities under construction in Chile, New Zealand, Saudi Arabia, and Taiwan. This initiative is part of Amazon Web Services’ effort to increase access to cutting-edge artificial intelligence chips from Nvidia (NASDAQ:NVDA). Additionally, Amazon has struck a licensing deal with The New York Times (NYSE:NYT) to incorporate its editorial content into Amazon’s AI platforms, marking a new venture in AI technology for the media company. Meanwhile, Citizens JMP has maintained its Market Outperform rating for Amazon, with a price target of $250, highlighting the company’s competitive strategies in digital advertising. This comes as Amazon offers discounts on its demand-side platform to attract marketers, intensifying competition with Google (NASDAQ:GOOGL) in the connected TV advertising space. In the broader tech sector, Tesla (NASDAQ:TSLA) and other "Magnificent Seven" stocks, including Amazon, experienced a dip in premarket trading amid uncertainties related to U.S. tariff policies and global trade tensions. Despite these challenges, Amazon continues to focus on expanding its AI capabilities and digital advertising market share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.