Amazon (AMZN) Nears Trillion Dollar Mark

Morgan Stanley's bullish view on Amazon suggests the e-commerce giant could zoom to a $1.2 trillion valuation.

Amazon AMZN stock

Amazon’s (NASDAQ:AMZN) stock price hit a new record high of $2,009.78 a share just after market open Thursday, as the stock gained less than 1 percent-giving it close to a $1 Trillion market cap.

The record high comes a day after the e-commerce and cloud-computing behemoth, known for disrupting entire industries, received a bullish call by Morgan Stanley’s Brian Nowak who raised his 12-month price target (PT) on Amazon stock to $2,500 from $1,850, implying a 25% upside from Wednesday’s close.

Nowak said he believes Amazon’s rapidly growing, high margin revenue streams – namely advertising, Amazon Web Services (AWS), and paid subscriptions – will drive higher profitability and continue to push up consensus estimates. Nowak predicts that AWS, subscriptions, and advertising will generate almost $45 billion in profit by 2020 from an estimated $25 billion this year.

The analyst, who maintains an ‘Overweight’ rating on the stock, noted in his research that the $2,500 target reflects Amazon’s improving business mix and his belief that it more accurately represents the company’s long-term potential earnings power.

AMZN shares are currently up 16 points, or 0.78% to $2,013 with a $975 billion market cap. Ticker has been on a tear this year, spiking more than 78% through Wednesday’s close. It has also gained more than 100% the past 52 weeks, compared to the S&P 500’s 18.5%.

Reference: Barron’s

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1 Comment on Amazon (AMZN) Nears Trillion Dollar Mark

  1. Retail investors stand discouraged because of high price of stock of behemoth. Stock split is recommended for wider participation. Else only funds stand to benefit.

    AMZN needs to think — why deprive the customers who are responsible for stupendous growth?

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