Citizens JMP Keeps $285 Target on Amazon (AMZN) as Auto Marketplace Faces Dealer Pushback

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Investors Should Keep on Their Radar. On August 26, Citizens JMP analyst Andrew Boone maintained the stock at Market Outperform with a price target of $285.00. The rating affirmation comes amid observations made by the firm on Amazon’s automotive market place operations.

The firm elaborated that many dealers were unaware of Amazon’s partnership until the day of the launch. This led to an unpleasant experience for customers as the sales teams were unprepared to help them through the Amazon purchasing process.

Moreover, the dealers’ sales forces were unable to answer questions about Amazon transactions. This led to inquiries transitioning to Amazon’s support team, reflecting the disparity between dealer operations and the Amazon platform.

“Within our conversations, dealers’ sales forces were unable to answer questions about Amazon transactions, as questions regarding the process needed to be made to the Amazon support team, highlighting a clear separation between dealer operations and the Amazon platform as Amazon is not integrated into dealer workflows, while dealers are unaware of how the Amazon process actually works. Dealers are notified about a vehicle purchase once the transaction is complete, versus receiving notifications for new leads. To that end, we believe Amazon’s listings are sourced at the OEM level, which is creating separation between dealer operations and Amazon. This also highlights the deficiency of Amazon Autos acting as a marketing channel compared to other used vehicle marketplaces that are more directly built to hand off sales leads.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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