Amazon Stock Forecast: Evercore Says AI Agents Like Alexa Drive Incremental Shopping, Can the Stock Hit a New High?

TradingKey - On August 28 US Eastern Time, Amazon (AMZN) bucked the market trend, surging over 4% intraday to lead gains among the Mag 7.

Evercore ISI stated that its latest consumer survey shows artificial intelligence is changing how users shop on Amazon. The firm believes agentic AI tools, such as Alexa AI, not only help consumers find intended items more quickly but may also create purchasing demand that did not previously exist.

An Evercore ISI research report noted that among users of Alexa AI shopping features, 57% reported purchasing products they were previously unaware of. The firm added that this marks the first time survey data has shown signs of agentic AI driving an "incremental" impact on Amazon's retail business.

Agent AI refers to artificial intelligence tools capable of understanding user needs, searching for and comparing products, and assisting in completing tasks such as placing orders under certain conditions. Compared with traditional keyword searches, these tools recommend products based on budget, preferences, and usage scenarios, helping consumers discover categories or brands they would not have otherwise actively searched for.

The survey also showed that 36% of respondents reported increasing their shopping volume following the addition of AI features to Alexa. Evercore ISI believes that as consumers increasingly use Alexa and other AI shopping tools, Amazon's retail growth could receive a further boost.

Regarding platform usage, approximately 92% of respondents stated they have used Amazon, making it the online retail platform with the highest penetration rate in the survey; Walmart ranked second at 58%. Evercore ISI believes Amazon's existing user base, product offerings, and logistics network provide it with a competitive edge in embedding AI into the shopping experience.

Evercore raised its price target on Amazon from $315 to $355, implying more than 30% upside from current levels, while maintaining its "Outperform" rating.

Amazon 2-hour candlestick chart, Source: TradingView

Amazon's stock price rebounded sharply after stabilizing near $256, and has now reclaimed the 0.382 Fibonacci retracement level ($263.88). Trading above its short-, medium-, and long-term moving averages, the short-term technical structure has improved noticeably compared to before.

On an optimistic note, if the stock price can hold firmly above $263.88 for consecutive sessions and make a valid breakout above $272.79, the rebound structure is expected to transition from short-term repair to more definitive strengthening, with upside attention directed near the interim high ($287.20).

If the price fails to break above $272.79 and drops back below $263.88, caution is advised as the recent rally may merely be a technical bounce following the earlier pullback. Should the price breach the moving average cluster formed by the 20-day moving average ($260.97) and the 160-day moving average ($260.93), short-term upside momentum will weaken significantly; losing the 0.5 Fibonacci retracement level ($256.68) would warrant caution against a retest of the 0.618 Fibonacci retracement level ($249.48).