Amazon Stock Lags Market as AI Agent Fears Mount in 2025
Amazon shares are trailing the broader market this year, but at least one Wall Street firm says the AI threat is overstated.
Amazon stock has underperformed the broader market in 2025, weighed down in part by investor anxiety over the rise of so-called agentic AI — autonomous artificial intelligence systems that some analysts fear could erode demand for Amazon's core commerce and cloud services. The sell-off reflects a broader Wall Street debate about which established tech giants stand to gain or lose as AI becomes more capable of acting independently on behalf of users.
Agentic AI refers to AI systems that can autonomously complete multi-step tasks — browsing the web, placing orders, or managing workflows — without direct human input at each stage. Critics argue that if AI agents can bypass traditional e-commerce interfaces, Amazon's retail dominance could face structural pressure over the long term, rattling confidence in the stock.
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However, Rosenblatt Securities is pushing back against that bearish narrative, arguing that fears surrounding agentic AI's threat to Amazon are overblown. The firm's stance suggests that Amazon's entrenched logistics network, AWS cloud infrastructure, and advertising business provide durable competitive moats that are unlikely to be disrupted as quickly or as severely as the market appears to be pricing in.
For investors, the divergence between Amazon's year-to-date performance and the broader market creates a potential entry-point debate — whether the underperformance represents a buying opportunity backed by Rosenblatt's thesis, or a legitimate re-rating of the company's long-term growth story in an AI-transformed landscape. The outcome likely hinges on how quickly agentic AI adoption accelerates and whether Amazon can position AWS as the infrastructure layer powering those very agents.
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