Amazon (AMZN) Stock Climbs as Rosenblatt Analyst Downplays AI Shopping Agent Concerns

Key Takeaways

Table of Contents

Scott Devitt of Rosenblatt Securities boosted his Amazon price target from $335 to $360, suggesting 46% potential upside.
The analyst argues that concerns about AI shopping agents such as Muse and Dots damaging Amazon’s advertising revenue are exaggerated.
Since Meta introduced Muse on September 8, Amazon stock has declined roughly 4%.
Amazon has restricted Muse’s access to its platform.
Shares climbed 0.6% to $247.22 on Wednesday and are up approximately 7% year-to-date.

Amazon stock closed Wednesday at $247.22, gaining 0.6% during the session. The upward movement followed Rosenblatt Securities analyst Scott Devitt’s decision to increase his price target on the e-commerce giant from $335 to $360.

Amazon.com, Inc., AMZN

The revised target represents a potential 46% gain from Tuesday’s close of $246.67. Devitt maintained his Buy recommendation on the shares.

The analyst’s note tackles a rising concern among Wall Street observers. Market participants have grown increasingly worried that AI-powered shopping assistants might undermine Amazon’s lucrative retail advertising operations.

Meta Platforms rolled out Muse, its proprietary AI agent, on September 8. Shortly after, OpenAI introduced Dots, a comparable offering.

Such agents handle browsing, price comparison, and purchasing tasks on behalf of users. This functionality potentially eliminates touchpoints where Amazon traditionally generates advertising income.

Since Muse’s introduction, Amazon shares have declined nearly 4%. The stock also sits 13% below its August 3 peak of $284.02.

However, Devitt rejects the pessimistic outlook. In his Wednesday research note, he labeled worries about Amazon’s advertising model facing displacement as “false.”

Devitt’s Rationale for Optimism

He highlighted Amazon’s proven track record of adjusting to changing consumer patterns. The corporation has successfully navigated comparable disruption concerns in the past, according to the analyst.

Devitt emphasized that Amazon already integrates sponsored advertisements within its own AI-driven shopping experiences. This provides the company with an inherent competitive edge over external AI solutions.

Additionally, the tech giant is developing “Alexa for Shopping,” an artificial intelligence assistant engineered to oversee the complete purchasing journey. Devitt noted it seeks to “own the entire funnel from intent to checkout.”

Amazon has taken action by blocking Meta’s Muse from its ecosystem. Devitt interprets this as a strategic defensive maneuver that allows Amazon to maintain control over shopping activity.

Amazon’s Information Edge

External agents currently lack access to Amazon’s extensive inventory and pricing information. Devitt believes this gap will prove challenging for competing AI platforms to bridge in the foreseeable future.

He contended that Amazon’s sophisticated personalization capabilities and extensive shopper data archives encourage customers to begin their product searches directly on Amazon’s platform. According to Devitt, reduced ad impressions don’t necessarily translate to diminished revenue.

Should each remaining interaction lead to a higher-value purchase, Amazon might still maintain profitability. The analyst also suggested that any advertising revenue impact would likely represent a minor portion of Amazon’s overall business.

Devitt’s fundamental assessment is that Amazon “can navigate this period of transition largely unaffected.” He identified no immediate modifications to Amazon’s projections or business operations related to the AI agent phenomenon.

As of Tuesday’s close, Amazon stock has appreciated approximately 7% in 2025. Despite Wednesday’s uptick, the shares remain significantly below their August peak.

✨ Limited Time Offer