Amazon (AMZN) has scheduled an event for Feb. 26 in New York City, where the e-commerce giant is widely expected to unveil a new Alexa digital assistant powered by advanced artificial intelligence (AI).
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The company has confirmed to media outlets that the event will include news about Alexa. Panos Panay, Amazon’s senior vice-president of devices, will lead the announcements at the event. The technology giant has been racing to release a new version of its voice-activated Alexa device that contains more advanced AI capabilities.
Amazon is facing rising competition in generative AI-enabled devices from rivals such as Alphabet (GOOGL) and Microsoft (MSFT). Executives at Amazon are now putting the final touches on the new Alexa device that will be powered by the company’s most advanced AI, according to media reports.
Redesigned Alexa
A new Alexa has been in the works at Amazon for several years. The company first previewed a redesigned Alexa back in 2023, demonstrating a live conversation between a company executive and the voice assistant as part of a yet-to-be-released feature called “Let’s Chat.” Amazon did not hold its usual autumn event last year where it announces new products.
There are rumors that Amazon plans to charge a monthly subscription fee for the new Alexa voice assistant to help cover the steep costs involved in making the technology. Although hundreds of millions of customers have Alexa-enabled devices in their homes, Amazon has struggled to monetize the product. The Wall Street Journal has reported that Amazon has lost tens of billions of dollars on its various devices.
AMZN stock has increased 40% in the last 12 months.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 39 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $261.78 implies 10.84% upside from current levels.
