William Blair analyst Dylan Carden has maintained their bullish stance on AMZN stock, giving a Buy rating today.
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Dylan Carden’s rating is based on Amazon’s extensive scale and diverse offerings, which are seen as significant advantages that the market has not fully appreciated. Despite Amazon’s shares not experiencing the same AI-driven gains as some of its peers, the company’s resources in compute, inference, and silicon are considered crucial in a market where such resources are scarce. As the AI market expands, Amazon’s broad customer base and service offerings are expected to become increasingly relevant, setting a positive outlook for the company in the coming years.
Moreover, Carden highlights that while there is some concern about Amazon’s role in AI-led commerce, the company has established a robust ecosystem through its Prime services. This ecosystem, supported by investments in AI-driven services and content, enhances Amazon’s platform relevance and sustainability. Additionally, the growing importance of Amazon’s services business is expected to improve margins, offsetting costs and supporting long-term growth and profitability.
In another report released today, UBS also maintained a Buy rating on the stock with a $279.00 price target.