Wells Fargo analyst Ken Sena is out with a bullish research note on Amazon.com, Inc. (NASDAQ:AMZN) after chatting with his artificial intelligence (AI) colleague Aiera.
The topic of discussion? Amazon’s future second headquarters, “HQ2.”
After this chat with Aiera, Sena says odds are on Boston. The analyst notes that his colleague know show to tailor cases circulating through the public, translate this knowledge, and group these widespread opinions. Aiera has been able to likewise see how this groupthink then takes a toll on how a given stock performs, among other elements at play. With Boston reigning as the top prediction, Chicago gets second place as prospective HQ2 for the e-commerce king, followed by Atlanta, New York, Toronto, Austin, and Washington, D.C.
Just how was Aiera led to make this call? Sena explains, “We used a separate clustering model to measure four parameters: company (AMZN), dates (September 2017 to March 2018), keywords (HQ2, HQ, Headquarters), and outputs (location). Specifically, the new clustering model intakes the entire graph of processed data between the two provided dates (in this case, about 900K objects) and uses the keywords and output requested as pivot points to generate all detectable clusters. These clusters are then organized by velocity and trend, sentiment, topic, and narrative pattern, and scored against other performance factors (macro analysis, stock price, etc.). Once scored, all possible outputs are sort-ordered and the top selections are sent to the summarizer (which allows Aiera to explain the selections). The top five Aiera summaries are also offered herein whereby Boston leads other city candidates (based on last 5 mos).”
Worthy of note, the analyst rates an Outperform rating on AMZN stock with a $1,700 price target, which implies a 6% upside from current levels. (To watch Sena’s track record, click here)
TipRanks shows this e-commerce darling has earned a strong bullish consensus on the Street. Out of 39 analysts polled in the last 3 months, 37 rate a Buy on Amazon stock while 2 maintain a Hold. The 12-month average price target stands at $1,685.02, marking a 5% upside from where the stock is currently trading.