He raised his price target on Amazon stock to 575 from 435, citing in part faster-than-expected growth for Amazon Web Services and strong growth for Amazon Prime.
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Shares of Amazon.com (AMZN) are up $3.98, or 0.8%, at $486.99, after the stock got a total of two upgrades today ahead of its earnings report on Thursday afternoon.
Growing confidence in the e-commerce giant is noted to be reflected as 34 analysts polled by Bloomberg rate the stock a Buy, 14 tag the stock as a Hold, whereas, just one analyst is noted to have suggest a Sell on the stock. During the same quarter previous year, the company posted $0.23 earnings per share. The consensus mean estimate is the calculated mean of all brokerage sell-side analysts that issue earnings estimates for the company.
In other Amazon.com news, Director John Seely Brown sold 480 shares of the stock in a transaction dated Tuesday, June 30th. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The ecommerce company is estimated to bring in $27 billion, which is enough to take the top spot from Macy’s. The stock was sold at an average price of $434.20, for a total value of $208,416.00. The stock now has an average rating of “Buy” and an average target price of $463.63.
Furthermore, Amazon’s strong competition with online video streaming website, Netflix, Inc. on Amazon Prime is anticipated to lead the e-commerce giant to push harder to gain market share, in turn positively reflecting on its revenues. 3,006,559 shares of the company’s stock traded hands.
Shares of Amazon were up more than 1 percent, to $488.79, midday Monday.
Shares of Amazon.com Inc. rose by 7.14% in the last five trading days and 11.09% for the last 4 weeks.
In a research note shared with investors and clients by Goldman Sachs on 21 July, Amazon.com (NASDAQ:AMZN) had its price target upgraded to $570.00. The most bullish analyst sees the company reporting earnings per share of $2.76 while the most bearish analyst is predicting a current year EPS number of $-1.28. Aside from these worries about diluting their brands, Cowen said retailers have also voiced concerns about Amazon using data from their products to test pricing strategies or negotiate its own deals with manufacturers. The Company’s products, offered through its consumer-facing Websites, includes merchandise and content that the Company purchase for resale from vendors and those offered by third-party sellers.
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The sell-side firm remains positive on Amazon’s anchor offerings of prime, AWS and the long term opportunity for the company. Customers access its websites directly and through its mobile websites and apps.
