Rosenblatt lifts Amazon target to $360 from $335

Amazon's stock has been under pressure as Wall Street worries that personal AI shopping assistants "compress the discovery and purchase funnel," threatening the retail media model that sells sponsored placements. The shares sit below both their 52-week high of $287.2 and their 50-day moving average of $256.15, and the Wall Street Journal said this week the stock has the "Muse Blues."

Rosenblatt's note pushes back on that narrative, arguing this is not the first time Amazon has faced pressure from shifts in consumer behavior, and that even if the advertising model changes, the company can navigate the transition largely unaffected. The firm points to Amazon's own engagement data for Alexa for Shopping and to sponsored-prompt conversion figures to make its case.

Still, the optimism carries real caveats. Amazon's capital spending reached $54.2 billion in one quarter and trailing free cash flow turned negative at -$7.6 billion, so the story hinges on whether the next earnings report shows AI agents growing the business rather than eating into it. With the stock at $246.39 and Rosenblatt's target above the $329.54 consensus, the call is a bet that Amazon adapts again.