A potential deal between Amazon (AMZN) and TikTok’s U.S. operations is catching Wall Street’s attention. Citi believes Amazon could unlock major strategic benefits in its advertising revenue if the deal goes through. Amid this backdrop, five-star-rated analyst Ronald Josey at Citi reiterated his Buy rating on AMZN stock, predicting a 53% upside from current levels.
Earlier this month, Amazon placed a bid for TikTok, joining other major contenders, including a consortium led by OnlyFans founder Tim Stokely and mobile technology company AppLovin (APP). Meanwhile, Trump said the TikTok deal would be finalized before Saturday’s (April 5) deadline.
Citi Sees Huge Potential for Amazon on TikTok Deal
According to Citi, TikTok has a huge U.S. user base of 170 million people, who spend over 70 minutes a day on the app. This gives Amazon a big opportunity to grow its ad business, reach more young users, and build a stronger role in online media.
Citi also points out that TikTok Shop, along with its strong network of online creators, could help Amazon improve how people find new products. Notably, TikTok Shop made about $9 billion in sales in 2024.
Overall, Josey advises investors to capitalize on Amazon’s recent share price dip following tariff concerns, noting that the company remains well-positioned for long-term growth. So far, AMZN stock has lost 9% in the last five days, primarily due to Trump’s newly announced tariffs and their potential impact on Amazon’s vast global supply chain.
Is AMZN a Buy Right Now?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $269.33, the Amazon average share price target implies an upside of 51% from the current level.
