Shares of Amazon.com Inc (AMZN) registered their largest single-session gain in four months on Wednesday, after Morgan Stanley raised its price target on the stock from $1 850 to $2 500, or the highest target on Wall Street. The new price target would give Amazon a market capitalization of $1.2 trillion.
The bank also reiterated its “Overweight” rating on the stock.
Amazon shares closed higher for a fourth consecutive trading session on NASDAQ on Wednesday. It has also been the sharpest daily surge since April 27th. The stock went up 3.38% ($65.28) to $1,998.10, after touching an intraday high at $1,998.49 and also a fresh all-time high.
Shares of Amazon.com Inc have surged 70.86% so far in 2018 compared with an 8.99% gain for the underlying index, S&P 500 (SPX).
In 2017, Amazon’s stock rose 55.96%, thus, it again outperformed the S&P 500, which registered a 19.42% return.
“We have increasing confidence that Amazons rapidly growing, increasingly large, high margin revenue streams (advertising, AWS, subscriptions) will drive higher profitability and continued upward estimate revisions,” Morgan Stanley analyst Brian Nowak wrote in a client note on Wednesday, cited by CNBC.
Nowak also pointed out that high profit margin businesses such as Amazon Web Services cloud computing, advertising and subscriptions would generate earnings of approximately $45 billion by the year 2020 compared with an estimated profit of $25 billion in 2018.
According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,100.00, with a high estimate of $2,350.00 and a low estimate of $1,840.00. The median estimate represents a 5.10% upside compared to the closing price of $1,998.10 on August 29th.
The same media also reported that 41 out of 47 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 1 – 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 – $2,002.64
R2 – $2,007.17
R3 (Range Resistance – Sell) – $2,011.71
R4 (Long Breakout) – $2,025.32
R5 (Breakout Target 1) – $2,041.22
R6 (Breakout Target 2) – $2,048.84
S1 – $1,993.56
S2 – $1,989.03
S3 (Range Support – Buy) – $1,984.49
S4 (Short Breakout) – $1,970.88
S5 (Breakout Target 1) – $1,954.98
S6 (Breakout Target 2) – $1,947.36
By using the traditional method of calculation, the weekly levels of importance for Amazon.com Inc (AMZN) are presented as follows:
Central Pivot Point – $1,896.98
R1 – $1,927.91
R2 – $1,950.42
R3 – $1,981.35
R4 – $2,012.27
S1 – $1,874.47
S2 – $1,843.54
S3 – $1,821.03
S4 – $1,798.51