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Amazon Stock: Is There Life on Re:MARS?
Stock Analysis & Ideas

Amazon Stock: Is There Life on Re:MARS?

Following a pandemic-driven two-year hiatus, this week (June 21-24), Amazon (AMZN) re:MARS, the company’s global event for machine learning, automation, robotics, and space (MARS) event is back.

This event differs from AWS re:Invent in that it centers on innovations with a longer-term timeframe rather than more in the here and now. “However,” says Monness analyst Brian White, “anytime AI, robots, and space are key themes at a conference, we expect some headlines to be made.”

Considering the recent New York Times piece about a Google senior software engineer put on leave after claiming Google’s LaMDA, its latest AI chatbot, was sentient and “had consciousness and a soul,” White thinks recent events will create “incremental buzz” around Amazon’s Alexa. For its part, Google has said it disagrees with the engineer’s claims, but the story made the rounds, and White anticipates it will “raise more questions about Big Tech’s use of AI.”

Robots and delivery drones also make use of AI and ML capabilities, and last week’s announcement that Amazon Prime Air will begin making drone deliveries to customers in Lockeford, California, later in the year, is rather timely.

According to Amazon, the ordering process for Prime Air-eligible items will remain the same, but when making a delivery, the drone will fly to the predetermined spot, land in the customer’s backyard, hover there at a safe distance before releasing the package and rising back up to altitude. Following almost a decade of work on the initiative, White thinks it is an “important development with interesting, long-term implications for Amazon.”

All in all, the 5-star analyst reiterated a Buy rating on Amazon shares and backed it with a $185 price target. Should the figure be met, investors are looking at one-year returns of 68%. (To watch White’s track record, click here)

Over the past 3 months, 38 analysts have reviewed Amazon’s prospects, and barring 1 Hold and Sell, each, all other reviews are positive, providing the stock with a Strong Buy consensus rating. Shares are anticipated to change hands for ~54% premium a year from now, considering the average price target stands at $177.89. (See Amazon stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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