BofA Securities analyst Justin Post has reiterated a Buy rating on Amazon.com Inc and established a price target of $275. This confidence stems from Amazon’s consistent e-commerce market share growth and robust engagement from both merchants and brands.
Post’s insights are based on conversations with sellers, marketplaces, and service providers during the Prosper Show 2026 conference in Las Vegas, where the spotlight was on retail media, artificial intelligence, and brand development.
He noted that many sellers have resisted raising prices despite the pressure from increasing oil and shipping expenses.
Merchants expressed to him that they are currently absorbing rising energy costs to avoid losing market share by increasing prices.
Several sellers acknowledged the uncertainty in the broader economic landscape but indicated they would consider price hikes only if cost pressures remain persistent.
Post also pointed out signs of consolidation among Amazon’s leading sellers.
Data from Skai indicates that traffic per seller has surged by 31% since 2021, largely due to a decrease in the total number of sellers.
New seller registrations have fallen by 44% year-over-year in 2025, with the active seller base also experiencing a decline.
Consequently, larger merchants are capturing a larger proportion of shopper traffic. The number of sellers achieving over $100 million in gross merchandise value (GMV) has increased to 235, compared to just 50 in 2021.
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Post acknowledged that sellers currently do not perceive large language models (LLMs) as significantly affecting direct traffic to Amazon.
Merchants reported that AI tools are assisting customers in evaluating products, although the majority of purchases still take place directly on Amazon.
Simultaneously, sellers are heavily investing in generative AI tools aimed at enhancing product listings and ensuring high visibility in AI-driven search and recommendation systems.
He also underscored the increasing significance of retail media advertising on the platform. According to Skai, retail media expenditure rose by 33% year-over-year in Q4 2025, and this sector is projected to reach $108 billion in 2026, up from $37 billion in 2021.
Even with the growth of 277 retail media networks, Amazon commands approximately 79% of the market share, while Walmart Inc trails with around 8%.
