Amazon.com is the worst-performing stock among the Magnificent Seven tech companies in September.
Shares of the e-commerce and cloud computing giant are down 3.9% this month. Meanwhile, shares of Meta Platforms, which recently rolled out its new AI-assistant Muse, are up 31%.
Amazon recently blocked Muse from shopping on its site. "We think it's fairly straightforward that third-party applications that offer to make purchases on behalf of customers from other businesses should operate openly and respect service provider decisions about whether or not to participate," an Amazon spokesperson said. (Meta has declined to comment.)
Meanwhile, rivals like Shopify and Walmart have embraced Muse. By shopping on behalf of its users, Muse could imperil Amazon's advertising business, which generated $19.8 billion in revenue in the company's second quarter this year, and the future of online shopping.
But a recent report by Summit Research on Seeking Alpha argued that the adoption of Muse and agentic AI would present an opportunity for Amazon to grow its major profit driver: Amazon Web Services. It argued that Amazon's cost-efficient Graviton chip will help meet growing demand for computing power.
"Although Muse has amplified concerns over Amazon's consumer AI strategy, the more important read-through is how broadening adoption is actually creating additive demand tailwinds for AWS," the Sept. 25 report said.
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