TLDR
- Rosenblatt analyst Scott Devitt raised his Amazon price target to $360 from $335, implying 46% upside.
- Devitt says fears that AI shopping agents like Muse and Dots will hurt Amazon’s ad business are overstated.
- Amazon stock has dropped about 4% since Meta’s Muse launched on September 8.
- Amazon has blocked Muse from operating on its platform.
- The stock rose 0.6% to $247.22 on Wednesday and is up about 7% this year.
Amazon stock traded at $247.22 on Wednesday, up 0.6% on the day. The move came after Rosenblatt analyst Scott Devitt raised his price target on the stock to $360 from $335.
That new target implies 46% upside from Tuesday’s closing price of $246.67. Devitt kept his Buy rating in place.
The upgrade addresses a growing worry on Wall Street. Some investors think AI shopping assistants could threaten Amazon’s retail advertising business.
Meta Platforms launched its own AI agent, Muse, on September 8. OpenAI followed with a similar tool called Dots.
These agents can browse, compare and buy products for users. That cuts out some of the clicks Amazon normally earns ad revenue from.
Amazon stock has fallen nearly 4% since Muse debuted. It’s also down 13% from its August 3 high of $284.02.
Devitt isn’t buying the doom narrative, though. He called concerns about Amazon’s ad model being displaced “false” in a Wednesday note.
Why Devitt Stays Bullish
He pointed to Amazon’s history of adapting to shifts in consumer behavior. The company has weathered similar disruption fears before, he said.
Devitt also noted Amazon already places sponsored ads inside its own agentic shopping flows. That gives it a built-in advantage over outside AI tools.
The company is also building out “Alexa for Shopping,” an AI assistant designed to manage the whole buying process. Devitt said it aims to “own the entire funnel from intent to checkout.”
Amazon recently blocked Meta’s Muse from accessing its platform. Devitt views that move as a smart defensive step that helps Amazon control shopping traffic.
The Data Advantage
Third-party agents still don’t have access to Amazon’s inventory and pricing data. That’s a gap Devitt thinks will be hard for outside AI tools to close anytime soon.
He argued Amazon’s personalization tools and years of shopper data keep customers starting their search on Amazon’s own site. Fewer ad clicks don’t automatically mean less revenue, according to Devitt.
If each remaining click converts to a higher-value transaction, Amazon could still come out ahead. He also said any ad revenue pressure would likely be a small slice of Amazon’s total business.
Devitt’s overall view is that Amazon “can navigate this period of transition largely unaffected.” He didn’t flag any near-term changes to Amazon’s guidance or operations tied to the AI agent trend.
Amazon stock is up about 7% year to date as of Tuesday’s close. The stock remains well off its August highs despite Wednesday’s gain.
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