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Amazon upgraded to buy despite Meta Muse AI threat, driven by strong ad revenue and AI investments

Analyst Insights
24 Sep 2026
Seeking Alpha
View Source
Bullish
Amazon upgraded to buy despite Meta Muse AI threat, driven by strong ad revenue and AI investments

Amazon is upgraded to a buy as recent stock weakness offers a good entry point despite competition from Meta's Muse AI agent. Amazon's advertising segment, nearing $75 billion in annual revenue, remains a key growth and profit driver but faces disruption risks from Meta's AI. The company’s heavy investments in computing infrastructure and strategic partnerships strengthen its AI and e-commerce ecosystem, positioning it well to adapt as AI adoption grows. Although Amazon lacks a leading frontier AI model, its comprehensive technology stack and scale provide resilience against emerging AI competitors.

Amazon shares trade at USD 245.97 on Pluang as of Sep 24, 2026 21:01 WIB, down 1.32% for the day. Despite the recent downgrade in price, investor interest remains strong with 94% of Pluang orders to buy Amazon stock. The stock’s market cap stands at $2.69 trillion, reflecting its significant scale amid ongoing competition from Meta's AI initiatives.

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