Amazon's AI Strategy Boosts Profitability Potential, Hims & Hers Health Shows Massive Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
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Source: NASDAQ.COM
- Amazon's AI Strategy: Amazon plans to leverage its AWS division to provide cloud computing services that support other enterprises in training large language models while heavily investing in custom chip design to challenge industry leader Nvidia, thereby enhancing the high-margin growth potential of AWS.
- Operational Efficiency Gains: CEO Andy Jassy stated that AI technology will enable the company to achieve higher efficiency in office work, with the potential to replace 600,000 employees by 2033, which could significantly improve financial performance, especially given the $162.75 billion in operating expenses reported in Q3.
- Hims & Hers Health Growth: Hims & Hers Health reported a 49% year-over-year revenue surge to $600 million in Q3, driven by an increase in subscriber count and spending per subscriber, despite its forward P/E of 48 indicating a substantial premium, reflecting strong business momentum in a competitive telehealth market.
- Significant Market Potential: According to McKinsey, approximately $250 billion of U.S. healthcare spending could be virtualized, and Hims & Hers aims to expand its market share in weight management by collaborating with Novo Nordisk to potentially offer Wegovy injections on its platform.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 241.730
Low
250.00
Averages
294.69
High
340.00
Current: 241.730
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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