Citi Reportedly Tells Investors to Buy AMZN Stock on Weakness

Summarize and humanize this content to 2000 words in 6 paragraphs in English After Amazon (AMZN) initiated a takeover bid for TikTok in the U.S., Citi recommended that investors buy AMZN on weakness, Schwab Network reported today. Citi believes that AMZN would benefit significantly from acquiring TikTok. Photo by Austin Distel on Unsplash Why Citi Thinks That TikTok US Would Help AMZN Noting that TikTok Shop had generated $9 billion of gross merchandise volume (GMV) in the U.S. in 2024, Citi highlighted the potential synergies between TikTok and AMZN. TikTok’s “strength across influencers” could enable Amazon to attract more potential buyers, Citi stated, according to Schwab. What’s more, TikTok, which has 170 million monthly active users in America, could boost Amazon’s ad business, Citi believes. However, multiple reports have suggested that “various parties involved in the talks” about a TikTok deal ” do not appear to be taking Amazon’s bid very seriously,” Schwab stated. The bank kept a $270 price target and a Buy rating on AMZN. Other Potential Suitors for TikTok US Among the other potential acquirers of the short-video website are AppLovin (APP) and a consortium of Oracle (ORCL), Blackstone (BX), and Silver Lake. The Recent Price Action of AMZN In the last month, the shares have lost 9%, while they have slumped 17% in the last three months. While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.