A number of market analysts reported that Amazon.com Inc’s (NASDAQ: AMZN) stock could soar to more than $1,000 over the next 12 months. Cantor Fitzgerald analyst Youssef Squali is the latest analyst to assert that the ecommerce giant could reach $1,000 per share.
Squali pointed out that Amazon’s core retail and cloud services segments could lead the stock higher, and that is why the analyst maintained a Buy rating on AMZN and increased his price target from $165 to $1,000.
This figure means that there is a 20 percent upside potential from the present price levels of the ecommerce titan. As of 6:22 AM GMT -4 on October 13, the stock of Amazon is changing hands at $834.09, up by 0.37 percent or 3.09 points.
Youssef Squali stated that he hiked his price target to “reflect continued strength in core retail and sustained momentum in AWS.”
The Cantor Fitzgerald forecasts that the ecommerce space is heading to a tipping point as the growth in terms of top-line is accelerating year-over-year in the first three quarters of the current fiscal year. This means that the biggest winner is Amazon.
Squali accredited the fast growing subscriber base of Amazon’s core online platform called Amazon Prime, the constant enhancements in value proposition for clients with new services, as well as the increasing shares of online shopping searches on the ecommerce platform.
With these robust trends, the investment firm has estimated that Amazon.com Inc will experience a 26 percent year-over-year growth in revenues for the third quarter of the current fiscal year. The company will report its earnings on the 20th of October. In addition, Cantor Fitzgerald forecasts that the figures will display a significant rally during the holiday season.
“We expect AWS’s strong economics to continue to fund growth initiatives at Amazon, widening its competitive moat in retail,” the analyst further added.
Even though the stock of the ecommerce company is very expensive, Squali urges investors to look at the bigger picture. In the long term, the analyst predicts that the AMZN stock will continue to grow as it continues to grab a bigger share in the $10 trillion market and improves its margins gradually.
Assuming that members of Amazon Prime tend to spend 2 to 3 times more compared to non-Prime members every year, the
Assuming Amazon Prime users have the tendency to spend two to three times more than non-Prime users annually, Cantor Fitzgerald believes that the solid growth of the ecommerce giant should resume in the next years to come.