Some analysts think the fast growth of AI-powered shopping agents could seriously threaten Amazon’s business, but others on Wall Street see things differently.
Competition is changing fast. Meta Platforms just launched its Muse AI shopping assistant, and OpenAI followed with its own product called Dots. Many expect more AI agents to arrive soon, which could change online shopping in a big way.
This change could create risks for Amazon. In a research note on Wednesday, Rosenblatt said that as personal AI agents and shopping assistants make it easier for people to find and buy products, some worry that Amazon’s retail media advertising could be disrupted. However, the firm disagreed, saying Amazon has handled big changes in consumer behavior before and should be able to adapt if its advertising model changes.
Rosenblatt raised its price target for Amazon, suggesting there is still a lot of potential for the stock to go up. The firm remains positive about Amazon’s future.
Amazon shares fell a little in premarket trading on Wednesday. The stock has dropped from its high in early August, but it is still up a bit for the year as of Tuesday’s close.
