Amazon tests AI-based assistants - new insights from financial experts

Amazon tests AI-based assistants - new insights from financial experts

According to a report by www.finanzen.at,

Amazon has launched a new AI assistant called Rufus to make shopping on the platform easier. The assistant specializes in finding ideas for gifts or toys for children. Amazon wants to personalize the software by training it through its wide product catalog and customer reviews. This move marks a shift in the way customers encounter products. Amazon also published its business figures, which show significant sales and profit growth in the Christmas quarter. In this quarter, sales increased by 14 percent to $170 billion, and profits jumped from around $300 million to $10.6 billion. In the AWS cloud division, sales rose by 13 percent to $24.2 billion. This success has led JPMorgan to raise Amazon's price target to $225 and keep the rating at Overweight. The Canadian bank RBC also raised its price target and left the rating at “Outperform”.

The launch of the AI ​​assistant Rufus and the sales and profit development as well as the positive analyst reviews are expected to trigger a further increase in Amazon's share price. This shows analysts' confidence that Amazon will continue to drive growth across various business areas. In addition, the Federal Association of Consumer Organizations is planning legal action against Amazon streaming service Prime Video because it is making a unilateral contractual change regarding advertising during streaming with a higher subscription price. This action could impact the relationship between Amazon and its Prime Video customers, potentially resulting in lower customer satisfaction and a possible decline in subscriber numbers.