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Amazon's stock faces potential risks from the rise of "agentic commerce," where AI agents handle shopping autonomously, possibly reducing traffic to Amazon's site and impacting its advertising revenue. Analyst Josh Beck lowered the price target to $260, warning that if fewer consumers start their searches on Amazon, retail growth could fall below current estimates. While some analysts see potential for Amazon to leverage its AI technology, uncertainty remains a challenge for the company, which has struggled to maintain investor confidence amid competition in the AI space.
Morgan Stanley's profit surged in the fourth quarter, driven by a revival in investment banking, with revenue rising to $2.41 billion from $1.64 billion a year earlier. The bank reported a profit of $4.40 billion, or $2.68 per share, compared to $3.71 billion, or $2.22 per share, a year prior. This growth reflects a broader trend on Wall Street, as major transactions pushed global mergers and acquisitions past $5.1 trillion, fueled by enthusiasm over AI and Federal Reserve rate cuts. Shares rose 1.6% in premarket trading.
Deutsche Bank predicts that this year marks the inaugural year for the scaling of Robotaxi and the deployment of humanoid robots. Humanoid robots are leveraging the automotive supply chain to accelerate cost reduction, with companies like Mobileye targeting a cost goal of $10,000; autonomous driving is moving from testing to scaling, with a surge in Waymo orders, and NVIDIA launching the Alpamayo platform to assist automakers with "plug-and-play." Physical AI is transitioning from the laboratory to mass production
Morgan Stanley will report earnings this Thursday, with analysts expecting revenue growth of 8.9% year-on-year to $17.66 billion and adjusted earnings of $2.42 per share. The firm has a strong history of exceeding revenue estimates, beating them by an average of 6.3% over the past two years. Positive sentiment in the capital markets segment has led to a 2.5% increase in share prices, with Morgan Stanley's shares up 2.6% recently. The average analyst price target is $185.33, compared to the current price of $182.63.
