Jeff Bezos’ e-commerce giant Amazon reclaimed its one trillion-dollar status after its results exceeded expectations benefiting from investment in faster shipping and a surge in Prime Membership.
Amazon claimed nearly half of 51 brokerages which raised their 12-month price target on the company’s stock which is now up to 9% at $2036.
In a note titled “not-so-subtle reminder Amazon is still King”. Benchmark analyst says The company reminded the world of its size and capacity advantage and raised its price target by 150 dollars to $2400.
Total sales jumped 21% to 87.4 billion dollars with sales from AWS which is the business responsible for selling data storage and computing power in the Cloud it grew by 34%. Revenue from subscription fees also surged by 32% as more shoppers sign up for prime services.
“Amazon is easily less than half-way through transforming retail by exploiting deep fulfillment moats established over many years,” Canaccord Genuity analyst Michael Graham said.
JP Morgan analyst Doug Anmuth pushed up his price target on the stock to $2525 from $2200 and said Amazon remains one of the blockages top picks U.S. Focus list.
“Overall, in our view Amazon’s ability to re-accelerate revenue growth at such a large scale is evidence that its (Prime One Day) investments are paying off,” Anmuth said.
“We’re increasingly optimistic Amazon will continue to execute throughout 2020 on both the top and bottom line.”
The e-commerce has in recent times been in and out of the 1 billion dollars club along with the likes of Apple, Microsoft and Alphabet.
Investors and analysts are tipping Visa Incorporated and Mastercard Incorporated as the next companies in line to move into the elite list.