E-retailing giant Amazon (NASDAQ:AMZN) rolled out several new noteworthy products yesterday, though the reaction wasn’t all that impressive. Well, the lack of impressed reaction rolls on, as Amazon is down 3.5% in Thursday afternoon’s trading despite picking up a “Signature Pick” designation from Wells Fargo.
Reports note that, even as Wells Fargo declared Amazon a Signature Pick, it left its estimates mostly as they were for Amazon. It also noted that shares were likely to outperform in 2024 and even 2025 as well. However, the fourth quarter of this year—the holiday shopping season—is looking a bit more of a gray area. Wells Fargo took notice of Amazon’s planned hiring bump for this year, noting that Amazon was looking to bring on 66% more new workers than it did at this time in 2022. That might pare back some of those earlier-seen efficiency gains, Wells Fargo cautioned.
Yet, Amazon has other potential troubles lurking on the side. For instance, new reports say that the new generative AI Alexa shares a problem with the old version: privacy issues. A report from Ars Technica noted that many of the generative AI features will have to pull some kind of data, whether from a user’s voice and inflection or from a user’s viewing habits on streaming services. For those already concerned about Alexa’s level of intrusiveness in their lives, the new Alexa will not be much different.
Is Amazon Stock a Good Long-Term Buy?
While investors may be backpedaling, analysts are still all in. Amazon stock is currently considered a Strong Buy, supported by 39 Buy ratings and one Hold. Further, Amazon stock offers investors a 34.5% upside potential, thanks to an average price target of $175.63.