Citi Reportedly Tells Investors to Buy AMZN Stock on Weakness

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.

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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.