TLDR
- Bank of America reiterated a Buy rating on Amazon with a $310 price target following the launch of Alexa for Shopping (AfS)
- AfS merges Rufus and Alexa+, combining product expertise with personalized shopping history across devices
- BofA analyst Justin Post estimates AfS could generate $215 billion in incremental GMV by 2035, adding $20 billion in retail profit
- Rufus already generated nearly $12 billion in annualized incremental GMV in Q4 2025
- 45 of 46 analysts rate AMZN a Buy, with an average price target of $319
Amazon (AMZN) is up about 16.31% year to date as of May 22, comfortably outpacing the SPY’s 8.92% gain over the same period.
Bank of America analyst Justin Post reiterated a Buy rating on the stock with a price target of $310. That target is based on a sum-of-the-parts valuation: AWS at 9x 2027 sales, first-party retail at 1.0x, third-party retail at 2.5x, and advertising at 5.0x.
The updated note came after Amazon unveiled Alexa for Shopping on May 13.
AfS is essentially a combination of Rufus and Alexa+. Rufus, launched in February 2024, is an AI shopping assistant trained on Amazon’s product catalog, customer reviews, and web data.
Amazon said over 300 million customers used Rufus in 2025. Customers who use Rufus during shopping are 60% more likely to complete a purchase, according to figures Amazon released in November 2025.
AfS adds the personalized context of Alexa+ on top of that. It works across the Amazon Shopping app, website, and Echo Show devices, using voice, touch, or both.
Post described a flywheel effect: better personalization drives higher conversion, which drives more engagement, which improves personalization further.
He noted Rufus generated nearly $12 billion in annualized incremental GMV in Q4 2025 alone. Post estimates AfS could produce $215 billion in incremental GMV by 2035, translating to roughly $20 billion in incremental retail profit.
AWS and Capital Spending
Post also pointed to strengthening momentum at AWS. He sees AI demand building, with the cloud unit benefiting from stronger profitability and a growing backlog.
One detail that stood out to analysts: Amazon did not raise its full-year capital spending guidance. Post read that as a positive sign, suggesting recent AI deals with Anthropic and OpenAI may already be factored into existing investment plans.
He also flagged the upcoming June Prime Day as a near-term catalyst for the retail segment.
Risk Factors
BofA did outline a few risks. These include rising competition from offline and local retailers, potential market share loss to cloud competitors using advanced AI, and elevated AWS investment needs that could pressure margins.
The team also noted Amazon’s track record of elevated stock price swings.
On Wall Street more broadly, the picture is nearly unanimous. Of the 46 analysts covering AMZN tracked by TipRanks, 45 rate it a Buy. Just one analyst has a Hold. The average price target sits at $319, implying around 19% upside from current levels.
Post’s $310 target sits just below the Street average, but his thesis lines up with the broader bullish consensus: AWS growth is re-accelerating, AI tools are improving the retail experience, and Amazon is not over-spending to get there.
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