Morgan Stanley was reported to have raised its price target for Amazon.com Inc (AMZN) to $1 400 from $1 260 previously, while also maintaining an “Overweight” rating on the stock.
Amazon shares closed higher for a second consecutive trading session on Friday. The stock went up 1.75% ($24.10) to $1,402.05, after touching an intraday high at $1,402.53 and also a fresh all-time high.
In the week ended on January 28th the shares of the e-commerce giant added 8.30% to their market value compared to a week ago, which marked the fourth gain out of five weeks. It has also been the best performance since the week ended on October 29th 2017.
The stock has extended its advance to 19.89% so far during the current month, following a 0.62% dip in December. The latter has been the third drop out of five months.
For the entire past year, the shares of the NASDAQ-listed company rose 55.96% following a 10.95% surge in 2016.
Morgan Stanley also revised up its bullish scenario price target for Amazon to $2 100 from $2 000, which would value the e-commerce giants market capitalization at more than $1 trillion.
Morgan Stanley analyst Brian Nowak noted that the firm remained bullish due to Amazon’s ad-revenue opportunity, as the e-commerce company “continues to drive its high margin revenue stream businesses that enable it to invest harder than ever and deliver upward revisions”.
The analyst now values Amazon’s advertising business at $75 billion, up from $50 billion, as forecast previously.
According to Nowak, Amazon’s sponsored advertising business may expand at an annualized rate of 54% during the period 2016-2019.
According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $1,350.00, with a high estimate of $1,600.00 and a low estimate of $980.00. The median estimate is a 3.71% decrease compared to the closing price of $1,402.05 on January 26th.
The same media also reported that 39 out of 48 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 4 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Amazon stock are presented as follows:
R1 – $1,404.03
R2 – $1,406.01
R3 (Range Resistance – Sell) – $1,408.00
R4 (Long Breakout) – $1,413.94
R5 (Breakout Target 1) – $1,420.89
R6 (Breakout Target 2) – $1,424.00
S1 – $1,400.07
S2 – $1,398.09
S3 (Range Support – Buy) – $1,396.10
S4 (Short Breakout) – $1,390.16
S5 (Breakout Target 1) – $1,383.21
S6 (Breakout Target 2) – $1,380.10
By using the traditional method of calculation, the weekly levels of importance for Amazon.com Inc (AMZN) are presented as follows:
Central Pivot Point – $1,367.08
R1 – $1,437.50
R2 – $1,472.95
R3 – $1,543.37
R4 – $1,613.79
S1 – $1,331.63
S2 – $1,261.21
S3 – $1,225.76
S4 – $1,190.31
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