Amazon.com, Inc. (AMZN) re:Invent Keynote Has This Top Analyst Betting on Robust Machine Learning Foundation and Rapid Innovation

Baird's Colin Sebastian casts attention on Amazon's technological evolution to ML capabilities, which could drive more adoption and sharpen its competitive upper hand.


Wednesday’s Amazon.com, Inc. (NASDAQ:AMZN) Web Services re:Invent keynote revealed to top analyst Colin Sebastian at Baird one key takeaway: a transition is happening at the e-commerce king’s headquarters, one that paves a technological and product pathway built on the tools of the future, artificial intelligence (AI) and machine learning (ML).

On the heels of an event elevating “machine learning in the spotlight,” the analyst maintains an Outperform rating on AMZN stock with an $1,100 price target.

Sebastian highlights, “Amazon continues to build on strong machine learning foundation. Today’s AWS re:Invent keynote marked a shift in focus from new technologies on AWS to specific product announcements, largely focused on AI/ML tools. Building upon the company’s existing data storage, compute, and analytic tools, Amazon is beginning to expand its offerings to make ML more easily accessible to businesses of all sizes, which we view as a key driver of increased adoption and further expands Amazon’s competitive advantage.”

Moreover, the analyst draws focus to the company’s SageMaker that offers an immense boost to machine learning accessibility: “While ML has become a frequent buzzword among internet and technology companies, we previously noted true AI/ML capabilities are often limited to large enterprises, with smaller platforms mainly expanding their data processing and analytics […] Given the intense competition for top AI/ML talent has largely favored large companies such as FB, AMZN, and GOOG, SageMaker is an important step toward making ML tools more broadly accessible for smaller enterprise customers.”

Concluding on a confident note giving kudos to Amazon’s innovative pace that has brought to the table more than 1,300 new services in 2017 alone, Sebastian says between Amazon’s firestorm of innovation and cutthroat pricing, the company is ready to tangle with rising rivalry in the tech field- even Google and Microsoft.

Colin Sebastian has a very good TipRanks score with a 74% success rate and a high ranking of #21 out of 4,738 analysts. Sebastian garners 24.8% in his yearly returns. When recommending AMZN, Sebastian yields 39.8% in average profits on the stock.

TipRanks shows analysts have a strong bullish bet backing the e-commerce king, with 32 of 33 analysts polled in the last 3 months rating a Buy on Amazon stock, and just 1 on the sidelines. With a return potential of 8%, the stock’s consensus price target stands at $1,271.74.