According to a Tuesday note by Cowen Inc, Amazon.com Inc (AMZN) is expected to achieve a 17% annual revenue growth during the upcoming five years. The note pointed to a number of opportunities that would drive revenue and margin growth globally, including in the e-commerce giants cloud business as well as in advertising activities. These prospects are expected to support a price surge in the companys shares.
Amazon shares closed higher for a third consecutive trading session on NASDAQ on Wednesday. It has also been the sharpest daily surge since December 6th. The stock went up 1.24% ($20.30) to $1,663.54, after touching an intraday high at $1,704.94, or a price level not seen since December 7th ($1,718.93).
Shares of Amazon.com Inc have surged 42.25% so far in 2018 compared with a 0.84% drop for the benchmark 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.
“Amazon has several drivers that should yield robust global revenue growth with rising margins the next several years, namely further B2C e-commerce market share gains in large retail verticals, emerging e-commerce verticals like B2B, and significant opportunity in existing and newer markets … like India, Mexico, and Australia,” Cowen analyst John Blackledge wrote in a note to clients, cited by CNBC.
“Amazon Web Services should enjoy years of secular tailwinds driving revenue CAGR of 31 percent from 2019 to 2024 as workloads migrate to the Cloud… Amazons advertising, while still nascent, will drive both revenue growth and margin opportunity,” Blackledge also noted.
The analyst has assigned a 12-month price target of $2 250 on Amazons stock.
According to CNN Money, the 45 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,125.00, with a high estimate of $2,450.00 and a low estimate of $1,900.00. The median estimate represents a 27.74% upside compared to the closing price of $1,663.54 on December 12th.
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”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Amazon.com Inc (AMZN) are presented as follows:
Central Pivot Point – $1,672.44
R1 – $1,735.03
R2 – $1,840.93
R3 – $1,903.52
R4 – $1,966.11
S1 – $1,566.54
S2 – $1,503.95
S3 – $1,398.05
S4 – $1,292.15
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