Evercore ISI has upgraded its outlook on Amazon.com, citing the growing influence of artificial intelligence in driving consumer purchases on its platform. Analyst Mark Mahaney noted that 57% of users of Alexa AI reported buying products they were previously unaware of, indicating that AI tools are enhancing product discovery.
The firm's annual online retail survey revealed that Amazon remains the leading online shopping platform, with 92% of respondents having used it, compared to Walmart's 58%.
Mahaney highlighted that the integration of AI into shopping experiences, particularly through Alexa, could further accelerate sales, with 36% of survey participants indicating they are purchasing more due to these AI enhancements. This optimistic view aligns with broader market sentiment, as 64 out of 68 analysts currently rate Amazon as a buy or strong buy.
Over the past month, Amazon's shares have appreciated by 16%, and they have increased by 27% over the last six months, reflecting strong investor confidence in the company's growth prospects fueled by AI advancements