Bank of America sets $230 price target for Amazon stock after Haul platform launch

Bank of America analyst Justin Post is bullish on Amazon.com Inc (NASDAQ: AMZN), recommending that investors load up on the stock following the launch of Amazon’s new Haul platform.

Haul is an online marketplace designed to compete with fast-fashion giants like Temu and Shein, featuring a broad range of products under $20.

The platform’s introduction aims to help Amazon better compete with discount retailers and address a growing challenge in the e-commerce space.

Post has assigned a “buy” rating on Amazon stock, setting a price target of $230, which suggests about 9% upside potential.

The Haul platform is seen as a strategic move to overcome significant headwinds that Amazon has faced due to the rapid rise of Temu and Shein, which have captured attention with their budget-friendly offerings.

Over the past year, these platforms have created a 1 percentage point headwind for Amazon, and Post expects Haul to help mitigate that challenge moving forward.

Amazon’s new storefront also offers a competitive edge with free delivery on all orders over $25, whereas Temu and Shein charge up to $13 for express shipping.

According to Bank of America’s estimates, Amazon could capture a portion of the 2% of the US e-commerce market currently controlled by Temu and Shein.

While Amazon’s stock doesn’t currently pay a dividend, this initiative could contribute to increased growth and market share in the long term.

What Trump tariffs may mean for Amazon.com Inc

Looking ahead, Post predicts that the e-commerce landscape could face disruptions if Donald Trump raises tariffs on imports during his second term as President.

However, he believes Amazon’s third-party seller model makes Haul a low-risk venture.

Even if tariffs make the platform less economically viable, Amazon has the flexibility to shift suppliers or close the storefront with minimal financial impact.

Post’s optimism is further supported by projections that the global e-commerce market will grow at a compound annual growth rate of 9.49%, potentially reaching $6.478 trillion by the end of 2029.

This growth trajectory provides a solid foundation for Amazon’s continued success, particularly with Haul and its broader initiatives.

AMZN is fully committed to generative AI

Amazon’s commitment to innovation is also a key driver for its future growth.

The company has exceeded analysts’ expectations in recent quarters and is heavily investing in generative AI.

CEO Andy Jassy recently referred to AI as a “one-in-a-lifetime opportunity,” underscoring Amazon’s strategic push in this area.

The company is on track to spend $75 billion this year and expects even higher capital expenditures in 2025 as it continues to expand its AI capabilities.

Amazon’s recent talks to invest in Anthropic, a U.S.-based AI safety and research company, further illustrate its dedication to leading in the AI space.

These strategic moves, along with the launch of Haul, make Amazon stock an attractive option for investors, despite the stock’s impressive rally over the past three months.

With its innovative approach to e-commerce and AI, Amazon is well-positioned to maintain strong growth in the coming years.