Craig Martell, the Defense Department's chief digital and artificial intelligence (AI) officer, is reportedly "scared to death" about the potential for AI to be used to spread disinformation and for other nefarious aims. Warren Buffett recently likened AI to the creation of the a
On May 10, 2023 at 13:27:06 ET an unusually large $17,212.50K block of Put contracts in Amazon.com (AMZN) was bought, with a strike price of $190.00 / share, expiring in 37 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Costco Wholesale Corp (Symbol: COST), where a total of 20,894 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to abo
Despite being the world's second-largest company with a whopping $2.3 trillion valuation, Microsoft (NASDAQ: MSFT) has found itself at the center of the start-up universe in 2023 thanks to its focus on artificial intelligence (AI).
Amazon (AMZN) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Investor expectations from Rivian Automotive (NASDAQ: RIVN) had dampened in recent months. Execution has been the biggest concern for the electric vehicle (EV) maker so far, with its underwhelming production, slow deliveries, mounting losses, cash burn, and outlook for 2023 leavi
Shopify shocked Wall Street recently when it announced that it was selling most of its logistics business, roughly a year after acquiring Deliverr for $2.1 billion in an attempt to build a logistics business.
Shares of Rivian Automotive Inc rose 11% on Wednesday as its positive earnings stood out in a poor quarter for electric-vehicle startups, but analysts warned that stiff competition will be a hurdle in its path to profitability.
What makes artificial intelligence (AI) technology so promising is its potential use in essentially every human interaction. Whether that's accounting, energy usage, or supply chain logistics, AI can instantly analyze a situation and help its users make the best decision.
Shares of Rivian Automotive Inc rose 7% on Wednesday as its positive earnings stood out in a poor quarter for electric-vehicle startups, but analysts warned that stiff competition will be a hurdle in its path to profitability.
The technology sector has a history of outperforming the rest of the stock market. Over the last five years -- amid the pandemic, supply chain issues, war in Europe, and a weak economy -- the Nasdaq-100 tech index has delivered a total return of 90%. That's significantly better t
There has been plenty of discussion and news reports about artificial intelligence (AI) and machine learning (ML) this year. The topic seems to be of great interest among investors. The spark for much of the discussion was the debut earlier this year of OpenAI's generative chatbo
Consumer spending is no longer booming as it was during the stimulus-fueled days. Despite the cooler environment, many retailers are looking to flex their
artificial intelligence (AI) muscles with tech capabilities that may be more advanced than you'd think.
Therefore, we'll use
TipRanks' Comparison Tool to consider three AI-savvy retailers -- AMZN, WMT, and JD --- with "Strong Buy" consensus ratings from Wall Street.
Amazon (
NASDAQ:AMZN)
Amazon is a FAANG heavyweight that's still down a great deal (around 43%) from its 2021 highs. Amazon may be a relative laggard in the FAANG group, given the impressive recovery the basket has enjoyed in recent quarters. That said, I would look to Amazon to catch up as investors come to respect its own AI capabilities.
Though the company may not have its own version of
ChatGPT facing consumers just yet, there's a good chance that AI could provide Amazon stock with quite a bit of "rally fuel" over the next 18 months.
Many analysts are more upbeat about Amazon at these depths than other FAANG firms, even though the Retail and AWS (Amazon Web Services) segments haven't been immune to macro headwinds.
Still, Amazon shouldn't be viewed as just a retail or cloud play, even though such segments contribute a massive chunk of overall revenues. With the Bedrock ML (machine learning) platform reveal and a long overdue upgrade in store for Alexa, it's not hard to imagine Amazon being the next beneficiary from this year's surge in AI hype.
According to a report by
Business Insider, the company is reportedly looking to bring advanced ChatGPT-like chatbot tech to Alexa. The tech may be every bit as impressive as ChatGPT, and if it is, it may be tough to derail Amazon stock from here, even if a looming recession weighs on retail and the cloud for a while longer.
It's hard to tell what will power Amazon's next leg higher, but whether it's AI or a return to growth for retail and the cloud, it seems tough to pass up Amazon stock at these levels.
What is the Price Target for AMZN Stock?
Amazon is a "Strong Buy," with 35 Buys and just one Hold on the name. That's overwhelming confidence by the analyst community. The
average AMZN stock price target of $134.24 implies a 5.9% gain from here.
Walmart (
NYSE:WMT)
Walmart is a brick-and-mortar retail heavyweight that's delved into the tech space in recent years. Undoubtedly, the impressive e-commerce presence and the Walmart+ subscription model are what we've come to expect from the long-time retailer in this digital age. As we enter the AI age, I expect Walmart will also get in on the action.
Walmart's getting tech-savvier over time. Though it may struggle to catch up to the original e-commerce disruptor, Amazon, Walmart has shown it's more than competent enough to hold its own and harness tech to do a bit of disrupting of its own. The firm has done a great job of adapting, and for this reason, I'm staying bullish.
Last week, Walmart made headlines for
tapping into AI to negotiate with certain suppliers. Given its behemoth size, Walmart already has a tremendous degree of purchasing power. With an AI negotiator (from Pactum AI, an autonomous negotiation company) on its side, it may have that much more power as it seeks to obtain better deals for investors and its loyal customer base.
Walmart is unlikely to just be dabbling in the AI waters. As more AI tools and features become more commonplace, expect Walmart to quickly hop aboard. Whether we're talking AI that can help improve operating margins or enhance the digital customer experience, it's about time we think of Walmart as more of a tech-driven retailer than an old-fashioned one that stands to lose share from the rise of next-gen technologies.
At 35.9 times trailing price-to-earnings, Walmart's trading on the high end of its five-year historical range (of around 33.7 times). The slight premium seems worth it, though, given Walmart's willingness to use AI tools that may help drive growth and margins.
What is the Price Target for WMT Stock?
Walmart comes in at a Strong Buy based on 24 Buys and five Holds. The
average WMT stock price target of $165 implies a mere 7.9% gain from here.
JD.com (
NASDAQ:JD)
JD is a Chinese digital retailer that's down 66% from its 2021 highs. The stock has been sliding since its most recent earnings report in March, as the firm slightly missed revenue expectations. The quarter seems to have signaled a fading of the Chinese economic recovery.
Despite the recent slide, JD looks like another candidate that could use AI to help it better navigate a rough economic patch. Though there are added risks of buying Chinese ADRs (American depository receipts), I remain bullish on the stock, primarily due to the potential growth that could be in store once China is finally ready to recover.
Earlier this year, JD.com pulled the curtain on its own ChatGPT-like generative AI platform ChatJD. Only time will tell how JD's AI stacks up against American offerings. Regardless, I view JD as a firm that could use AI to help stop the bleeding in its stock.
However, as JD is getting in on the AI race, questions linger about what regulators will do should a corporate AI product become too powerful. Due to this regulatory uncertainty, JD deserves to trade at a discount, but at this juncture, analysts think there's too large of a discount applied to shares.
What is the Price Target for JD Stock?
JD's a Strong Buy, with 13 Buys and four Holds. The
average JD stock price target of $62.24 implies a whopping 74.7% upside potential.
Conclusion
Even with a seemingly likely, albeit shallow and slow-moving recession that may be in the cards for 2023, I'd look for the challenged retailers to pursue technological efforts to help them weather the storm and come out on the other side of a potential recession with strength.
Disclosure
Amazon.com is offering U.S. customers $10 to pick up a purchase rather than have it shipped to a home address, as the e-commerce giant joins other retailers in racing to slash costs for home delivery and returns amid slack consumer demand.
Tech stocks were dropping late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) shedding 0.8% and the Philadelphia Semiconductor index declining 2%.
Amazon, Alphabet's Google, Microsoft and other non-European Union cloud service providers looking to secure an EU cybersecurity label to handle sensitive data can only do so via a joint venture with an EU-based company, according to an EU draft document seen by Reuters.