Artificial intelligence is rapidly changing how consumers shop online, and Oppenheimer believes Etsy (NASDAQ: ETSY) could be one of the biggest beneficiaries. The investment firm also upgraded Etsy from “perform” to “outperform” with a $90 price target. 

Behind the bullish call is a simple idea: Consumers are beginning to change how they search for products online. Rather than starting every shopping journey with a traditional Google search, more people are turning to artificial intelligence tools for product ideas, comparisons, recommendations, and inspiration. And again, that could benefit Etsy, added the firm.

The shift toward AI-assisted shopping is no longer just an idea.

According to an Oppenheimer consumer survey, shoppers are relying less heavily on Google Search when looking for products. Instead, they are increasingly experimenting with artificial intelligence tools to discover items online.

Adobe Analytics data provided another encouraging signal, showing that nearly half of U.S. consumers used AI for some part of their online shopping experience in June.

Consumers may use these tools to compare prices, summarize customer reviews, generate gift ideas, locate hard-to-find products, or narrow a large number of choices. As the technology improves, AI assistants could become increasingly involved in purchasing decisions.

Technically, ETSY appears to have bottomed out at $70, and is just starting to pivot. It’s also oversold on RSI, MACD, and Williams’ %R. Our initial price target is $80 a share.

Sincerely,

Ian Cooper