E-commerce giant Amazon (AMZN) is planning to launch a low-cost storefront with strict price caps for merchants, according to a report by The Information. Some examples include $8 for jewelry, $13 for guitars, and $20 for sofas. Amazon listed 700 items affected by these price limits in messages sent to merchants, and plans to ship orders directly from a facility in Guangdong, China, as part of this new plan.
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It is also worth noting that Amazon is charging lower fulfillment fees for items sold through this storefront, which suggests they are trying to compete with popular discount platforms like Temu and Shein. These competitors have gained popularity due to their low prices and have forced Amazon to adjust its strategy to stay competitive.
However, e-commerce is not the only segment that is seeing innovation.
Anthropic Introduces New AI Features
In a separate development, Amazon-backed Anthropic introduced a new feature for its Claude 3.5 Sonnet AI model that allows it to interact with computers like a person. Indeed, it can move a cursor and click on different parts of the screen. This feature is currently in public beta mode and lets Claude work with regular computer software without needing special tools or environments designed for AI.
This approach is different from traditional AI models because it allows Claude to adapt to the computer programs people already use on a daily basis.
Nevertheless, there are some security risks that the company is watching out for, such as “prompt injection” attacks, which means that someone could give malicious instructions to the AI. However, Anthropic has kept Claude at its current safety level and believes that no extra precautions are needed right now.
What Are Analysts Saying About AMZN?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average AMZN price target of $224.16 per share implies 17.6% upside potential.
