According to Schwab Network, Amazon (AMZN) has made a bid to acquire TikTok’s U.S. operations, prompting Citi to recommend investors buy AMZN during its current price decline.
Citi analysts believe the acquisition would significantly benefit Amazon, citing TikTok Shop’s $9 billion GMV in the U.S. in 2024. They suggest that TikTok’s strong influencer network could attract more buyers to Amazon, and its 170 million monthly active users could boost Amazon’s advertising business.
However, reports indicate skepticism among parties involved in the deal, raising questions about its likelihood. Citi maintains a $270 price target and a Buy rating on AMZN.
Other potential TikTok acquirers include AppLovin (APP) and a consortium of Oracle (ORCL), Blackstone (BX), and Silver Lake.
AMZN shares have declined by 9% in the past month and 17% in the last three months. While Amazon holds potential, we believe that alternative AI investment options exist that could provide higher returns.
