The US stock market has continued its early 2025 struggles as companies look to position themselves to benefit from an inevitable turnaround. Among them is Amazon (AMZN), which has announced a new expansion to its AI push that has the stock hoping it could put an end to its 8-week losing streak.
The company is firmly entrenched as a top stock in both the AI and cloud-computing sectors. Indeed, this most recent development will see it look to increase competition with the former, as it seeks to shrug off early-year losses likely connected to the impending tariffs planned by US President Donald Trump.
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Amazon Targeted Increased AI Push: Can It Overcome Market Downturn?
April 2nd has been lauded by President Trump as America’s ‘Liberation Day.’ Specifically, it will see the nation integrate an aggressive economic policy that issues reciprocal tariffs on a host of nations. The effort to balance trade has only enhanced the theme of 2025 so far: uncertainty.
Yet, that has not stopped companies from seeking to move forward. Despite the downturn, firms are hoping to catch the good graces of Wall Street. For Amazon (AMZN), that has come in the form of an expanded AI push that will hopefully end the e-commerce giant’s 8-week losing streak.
On Monday, Amazon launched a new general-purpose AI agent, according to an Investors Business Daily report. Indeed, the Amazon Nova Act AI is said to “reliably perform basic tasks inside a web browser, such as setting an exact time to order a food delivery each week.”
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The product is viewed as the first launch of Amazon’s AGI SF Lab. The California-based research group came to fruition in February. Moreover, it is looking to compete with web browser assistants like OpenAI’s ChatGPT. The question is, can it help the company’s falling stock?
With more than $100 billion in capital expenditure planned for this year, it is driven to compete. However, over the last five days, the stock has dropped 4.5%, with it down 13.5% year to date.
Falling below the $200 level hasn’t scared off analysts, however. CNN data shows that 93% of 76 analysts have a buy rating on Amazon stock. Moreover, it holds a median price target of $270, denoting a 40% upside for most experts. Yet, at the high end, the stock could reach heights above the $300 mark over the next 12 months.