Shares of Amazon.com Inc.
AMZN,
rose 1.9% in afternoon trading Monday, to put them on track for their first gain in eight sessions. The bounce comes after the ecommerce and cloud giant announced a $4 billion investment in generative artificial intelligence company Anthropic. D.A. Davidson analyst Tom Forte reiterated his buy rating and $150 stock price target on Amazon. “We believe this highlights Amazon’s strong commitment to AI, improves its ability to compete with its tech rivals (such as Google and Microsoft), and increases our conviction in its ability to generate incremental revenue growth and expense management by exploiting AI,” Forte wrote in a note to clients. Through Friday, Amazon’s stock had tumbled 10.9% amid a seven-session losing streak, which was the longest such streak since the seven-day stretch that ended Nov. 3, 2022. The stock was still down 4.7% so far this month, which puts it in danger of snapping a six-month winning streak, which is the longest such streak since the six-month stretch that ended July 2011. Amazon’s stock has run up 56.6% year to date, while the Nasdaq 100
NDX,
has climbed 34.6% and the S&P 500
SPX,
has gained 12.7%.
