Retailers benefiting from AI
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The Numbers: Retailers are expected to be among the largest beneficiaries of AI technology, with revenues generated by AI for retailers expected to more than triple from 2022 to 2027. Beneficiaries: Morgan Stanley expects that Amazon, Etsy, and Farfetch will be the biggest beneficiaries of this trend. Wall Street Analysts expect all three stocks to increase by more than 20% in the next 12 months. Upside: Farfetch has the most significant upside, as the average expectation on Wall Street is for the stock to increase by 118.57% in the next 12 months, more than doubling in value.
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 Stock to Watch: Farfetch Ltd (NYSE: FTCH) - Farfetch is a global platform for luxury fashion that includes numerous online marketplaces.
- The company currently has a P/E ratio of 7.17 and a forward P/E of -3.06.
- The company had revenues of $2.32B last year with a 14.89% net margin.
- Of the 21 analysts tracking the stock, four list it as a strong buy, six as a buy, nine as a hold, one underperform, and one sell.
- On average, investors believe the stock has a 118.57% upside.
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 Stock to Watch: Etsy, Inc. (NASDAQ: ETSY) - Etsy operates two-sided online marketplaces that connect buyers and sellers worldwide.
- The company had revenues of $2.57B last year with a net margin of -26.92%.
- The company currently has a P/E ratio of -18.18 and a forward P/E of 37.82.
- Of the 30 analysts tracking the stock, six list it as a strong buy, nine as a buy, 13 as a hold, one underperform, and one sell.
- On average, investors believe the stock has a 31.82% upside.
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 Stock to Watch: Amazon.com Inc (NASDAQ: AMZN) - The company had revenues of $513.98B last year with a net margin of -0.53%.
- Of the 52 analysts tracking the stock, 16 list it as a strong buy, 31 as a buy, four as a hold, one as an underperform, and none as a sell.
- On average, investors believe the stock has a 24.19% upside.
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 Stock to Watch: Nike Inc (NYSE: NKE) - Nike is a global company engaged in designing, marketing, and distributing athletic footwear, apparel, equipment, and accessories for sports and fitness activities.
- The company currently has a P/E ratio of 36.17 and a forward P/E of 37.69.
- The company had revenues of $50.626B last year with a 10.82% net margin.
- Of the 37 analysts tracking the stock, eight list it as a strong buy, 15 as a buy, 11 as a hold, two as underperform, and one as a sell.
- On average, investors believe the stock has a 7.54% upside.
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 Stock to Watch: eBay Inc (NASDAQ: EBAY) - eBay Inc. is a global commerce company connecting buyers and sellers in more than 190 markets around the world through its Marketplace platforms.
- The company's 52-week range is $35.92-$55.86, and its market cap is $23.145B.
- eBay's EPS (TTM) is -2.14, and its P/E (TTM) is -20.17.
- The company has a dividend yield of 2.32% and a forward P/E (NTM) of 10.42.
- According to the consensus of 31 analysts, eBay is rated a hold, with an average price target of $47.81 and a potential upside of 10.9%.
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Trend to Watch: Cybersecurity Stocks While retailers will benefit from AI, it also presents security risks. General Mills recently announced that it was launching new measures to prevent people from using AI to negatively impact its brand image. With this in mind, three companies could benefit from being called upon to defend against the negative uses of AI. - Cloudflare (NYSE: NET)
- Microsoft (NASDAQ: MSFT)
- Palo Alto Networks (NASDAQ: PANW)
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 |  | Liam Gill is a lawyer who raised $250k with just an idea and turned it into a $35M tech startup.
He now teaches entrepreneurs how to Pitch, Negotiate and Strategize so they can do the same.
Let's Connect |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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