Key Takeaways
- Bank of America has maintained its Buy recommendation on Amazon with a $310 price objective after the Alexa for Shopping (AfS) rollout
- AfS integrates Rufus and Alexa+, blending product knowledge with customized shopping data across multiple platforms
- Analyst Justin Post from BofA projects AfS could deliver $215 billion in additional GMV by 2035, contributing $20 billion to retail earnings
- Rufus delivered almost $12 billion in annualized additional GMV during Q4 2025
- 45 out of 46 Wall Street analysts recommend buying AMZN, with a consensus price objective of $319
Amazon (AMZN) has climbed approximately 16.31% year to date through May 22, significantly surpassing the SPY’s 8.92% advance during the identical timeframe.
Justin Post, an analyst at Bank of America, has reaffirmed his Buy recommendation on the e-commerce giant with a $310 price objective. This valuation employs a sum-of-the-parts methodology: AWS valued at 9x 2027 revenue, first-party retail operations at 1.0x, third-party marketplace at 2.5x, and advertising business at 5.0x.
The refreshed analysis followed Amazon’s introduction of Alexa for Shopping on May 13.
AfS represents a fusion of Rufus and Alexa+. Rufus, which debuted in February 2024, functions as an AI-powered shopping companion trained on Amazon’s extensive product database, user reviews, and internet information.
Amazon reported that more than 300 million users engaged with Rufus throughout 2025. Shoppers utilizing Rufus are 60% more likely to finalize transactions, based on data Amazon disclosed in November 2025.
AfS layers the customized intelligence of Alexa+ onto this foundation. The technology operates seamlessly across the Amazon Shopping application, desktop site, and Echo Show hardware, accepting voice commands, touch input, or both simultaneously.
Post described a self-reinforcing cycle: enhanced personalization increases conversion rates, which stimulates greater user engagement, which further refines personalization capabilities.
He highlighted that Rufus produced nearly $12 billion in annualized additional GMV during Q4 2025 alone. Post forecasts AfS could generate $215 billion in incremental GMV by 2035, which would translate to approximately $20 billion in additional retail earnings.
Cloud Computing and Investment Strategy
Post also highlighted accelerating growth trends at AWS. He anticipates AI demand intensifying, with the cloud division enjoying stronger profitability metrics and an expanding order backlog.
One aspect that caught analysts’ attention: Amazon chose not to increase its full-year capital expenditure forecast. Post interpreted this as an encouraging indicator, implying recent AI partnerships with Anthropic and OpenAI may already be incorporated into current investment frameworks.
He also identified the upcoming June Prime Day as a short-term growth driver for the retail operations.
Risk Factors
BofA did identify several concerns. These encompass intensifying competition from brick-and-mortar and regional merchants, possible market share erosion to cloud rivals deploying sophisticated AI capabilities, and substantial AWS infrastructure requirements that could compress profit margins.
The research team also referenced Amazon’s history of significant stock volatility.
Across Wall Street generally, sentiment is overwhelmingly positive. Among the 46 analysts following AMZN tracked by TipRanks, 45 recommend buying the stock. Only one analyst maintains a Hold rating. The consensus price objective stands at $319, suggesting approximately 19% potential upside from present levels.
Post’s $310 objective falls slightly below the Street consensus, but his investment rationale aligns with the prevailing optimistic view: AWS expansion is gaining momentum, AI technologies are enhancing the shopping experience, and Amazon is managing capital efficiently.
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