Will Amazon's Updated Alexa Include a Subscription? What To Know
Amazon stock is higher Wednesday on news the company is working on an upgraded version of its Alexa voice assistant, which could include a monthly subscription.
Amazon.com (AMZN) stock is trading higher Wednesday on news the company is in the process of launching an upgraded version of its Alexa voice assistant. And media reports indicate the e-commerce giant plans to offer Alexa as a monthly paid subscription separate from Amazon Prime.
Amazon will upgrade Alexa with generative artificial intelligence (GenAI) and plans to charge a monthly subscription fee separate from Amazon Prime to offset the cost. This is according to CNBC, which cites sources familiar with the plans. The launch is expected to come later this year but a price has not yet been determined, the report added.
The news comes as the AI race heats up. Just a week ago, for instance, OpenAI announced GPT-4o, which is a faster and smarter AI assistant that includes features such as real-time translation, tutoring and interview preparation.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Alexa was first launched by Amazon in November 2014, but has not received a major upgrade in the near decade since. However, in his 2023 shareholder letter, Amazon.com CEO Andy Jassy said that the company was "building a substantial number of GenAI applications across every Amazon consumer business," including "an even more intelligent and capable Alexa."
Amazon also spoke of its plans to upgrade Alexa in a September 2023 blog post.
"We've always thought of Alexa as an evolving service, and we've been continuously improving it since the day we introduced it in 2014," Amazon said. "A longstanding mission has been to make a conversation with Alexa as natural as talking to another human, and with the rapid development of generative AI, what we imagined is now well within reach."
However, the blog post made no mention of plans to charge a monthly subscription for the upgraded version of Alexa, though doing so could certainly help boost the company's top line.
Is Amazon stock a buy, sell or hold?
Analysts overwhelmingly think Amazon is one of the best stocks to buy and it's also one of the top-rated Dow Jones stocks to boot. This is unsurprising given the jaw-dropping return AMZN has generated for long-term investors.
Part of the stock's strength is a result of the company's ability to capture growth, particularly in difficult macro environments.
"Amazon's retail sales were up 10% in the most recent quarter where the consumer still traded down on price," says Shams Afzal, managing director and portfolio manager for Carnegie Investment Counsel. "Efficiency through serving eight different regions rather than one large national network is paying dividends, turning its entire retail division profitable."
Amazon's cloud division, which is responsible for more than 80% of the company's operating income, is another catalyst for this impressive financial performance, Afzal adds.
According to S&P Global Market Intelligence, the consensus analyst target price for AMZN stock is $217.97, representing implied upside of about 20% to current levels. Meanwhile, the consensus recommendation is a Strong Buy.
"Given the company's indisputable franchise leadership, ability to leverage its vendor relationships in the retail space, and market dominance and superior growth in infrastructure-as-a-service, we believe that AMZN warrants long-term accumulation in most equity accounts," Argus Research analyst Jim Kelleher said in May research report. "We recommend initiating new positions or dollar-averaging into existing positions on share price weakness."
Argus currently rates Amazon a Buy with a $205 price target, representing implied upside of about 11% to current levels.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
How Prepaid Verizon Phone Service Works and When It's a Smart ChoiceExplore the differences between Verizon Prepaid and Verizon Postpaid plans—costs, perks, flexibility, and when going prepaid makes sense.
-
Try This One-Minute Test to Uncover Hidden Health RisksFinding out this little-known fact about your body could reveal your risk of heart disease and more. It's a simple, free check for healthy aging.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
New Opportunity Zone Rules Triple Tax Benefits for Rural Investments: Here's Your 2027 StrategyNew IRS guidance just reshaped the opportunity zone landscape for 2027. Here's what high-net-worth investors need to know about the enhanced rural benefits.
-
Honeywell Leads Dow Higher: Stock Market TodayOil prices got a lift after the Treasury Department announced new sanctions on Russia's two largest oil companies.
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.