Amazon’s shares will rise to $3,000 over the next two years, gaining a market capitalization of nearly $1.5 trillion. Most excitingly, this is expected without them doing anything different from what the company does now. A Piper Jaffray analyst came up with this statement in a note to their clients this weekend.
Analyst Michael Olson commented: “We believe Amazon shares (symbol: AMZN) will reach $3,000… in 24 to 36 months… We have a high degree of confidence that Amazon shares can reach this level without significant acquisitions or other significant business changes.”
Olson also noted that he anticipates a slowdown in the growth of all of Amazon’s primary business divisions; and he is even applying conservative multipliers, but this will still be the case. Summing up all of his analyses, he still thinks that investors are underestimating the value of Amazon’s stock.
Adjusting for the value of the AWS segment and Advertising (within “Other”), the company’s core retail segment is trading at a level that implies that business is valued below a traditional brick & mortar multiple of salesMichael Olson
Piper Jaffray’s official 12-month pricing target is $2,225, and the investment rating of shares is “overweight.” A $3,000 rally would mean a profit of 65%.
Amazon’s stock price growth
Amazon’s new record of shares comes the day after equities rose 3.2 percent thanks to Morgan Stanley analysts. They raised the 12-month price target to Amazon shares to $ 2,500 from the current $ 1850. Compared to Wednesday’s closing stock price, the new price target is more than 25 percent higher.
Amazon shares have risen nearly 71 percent since the beginning of this year. Their price has more than doubled in the last 12 months. The company is now the second most valuable public company in the US after Apple. This March, it managed to outperform Alphabet, Google’s parent company.
The increase in online purchases by the public is the basis of Amazon’s revenue growth over the past year. Also important is the shift of business computing to cloud technology that provides businesses with software and data from remote servers and databases. The subsidiary Amazon Web Services is the market leader in this area.
Amazon’s shares rose 20% this year and 86% over the last two years. However, the shares are below their historic high (11% lower), which gave the company a market capitalization of over $1 trillion.
If You are interested in looking at the history of Amazon shares, read this article: https://www.macrotrends.net/stocks/charts/AMZN/amazon/stock-price-history