Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Investors Are Watching Right Now. On August 13, Telsey analyst Joseph Feldman reiterated an Outperform rating on the stock with a $265.00 price target.
The rating affirmation comes as Amazon continues to leverage its substantial $670 billion annual revenue base to expand market share.
“TAG View: Overall, this expansion to offer same-day delivery of perishable groceries creates a one-stop shop for an array of customer needs. Importantly, we believe this is a strong move for Amazon, deepening relationships with and share of wallet among its Prime member customers, as well as positioning the company to compete better with other leaders in the grocery space..”
This expansion builds on Amazon’s strength and positions it better against its grocery competitors. The firm also believes that the tech giant can leverage its Prime membership base, small business relationships, and technological advantages to continue gaining market share.
Some major growth opportunities further lie in grocery, private brands, pharmacy, logistics, and generative AI. These areas can make the company more valuable in the future.
“TAG Thesis: Broadly, Amazon should continue to gain market share by leveraging its sticky Prime member base, small business relationships, and technological edge. Amazon’s ability to fuel key growth opportunities—grocery, private brands, pharmacy, logistics, and generative AI—should make it more valuable. The solid growth and profitability of AWS and advertising should continue to outperform and support Retail. We maintain our Outperform rating and 12-month price target of $265, which is based on applying an EV/EBITDA multiple of ~15x to our 2026 EBITDA estimate of ~$193B.”
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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