Analysts are feeling optimistic about Amazon.com Inc. (AMZN) as Prime Day approaches, but it's not just about the sales numbers. Bank of America sees the retail event as a prime opportunity to push the company's AI-powered shopping assistant, Alexa for Shopping, into the mainstream.

BofA reiterated its Buy rating on Amazon and maintained a $310 price target, implying about 30.5% upside from the stock's June 18 closing price of $237.50.

Prime Day Sales Outlook

The brokerage estimates Amazon's four-day Prime Day event, running from June 23 to 26, will generate roughly $21.6 billion in gross merchandise volume (GMV), up about 5% year over year. That breaks down to $11.6 billion from first-party sales and $10 billion from third-party sellers.

AI Shopping Strategy

Beyond the revenue boost, analysts view Prime Day as a strategic moment for Amazon to drive awareness and engagement with Alexa for Shopping. According to Amazon, the AI assistant can offer personalized deals and product recommendations based on a customer's shopping history and preferences. It also lets users view up to 365 days of price history, set price alerts, and enable automatic purchases when products hit target prices.

Bank of America believes these features could boost customer engagement, improve conversion rates, and protect direct traffic to Amazon's platform. The brokerage estimates Alexa for Shopping could generate more than $200 billion in incremental GMV by 2035 and contribute over $20 billion in additional retail profit over time.

Revenue Outlook

The firm also expects Amazon to report second-quarter revenue at or above the high end of its $199 billion guidance, citing strong retail spending trends through May and continued momentum at Amazon Web Services. It estimates Prime Day will contribute roughly $8.5 billion in incremental revenue during the quarter.

Long-Term Growth Drivers

Bank of America said Prime Day remains an important branding event that reinforces the value of Amazon Prime while helping the company gain online retail market share. Although promotional activity could pressure margins, analysts believe Amazon can offset those costs through logistics efficiencies and stronger advertising revenue during the event.

Stock Performance

The firm noted that Amazon shares have gained an average of 2.2% in the week following Prime Day over the past five years, though annual performance has varied. On Thursday, Amazon stock was up 3.38% at $245.52, riding a tech-led rally that pushed the Nasdaq up 2.45% and the S&P 500 up 0.84%.