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The impressive performance of Amazon (AMZN) and Netflix (NFLX) has caused Wall Street analysts to set new price targets for the companies’ stocks.
Amazon.com Inc (NASDAQ: AMZN) has been making a tremendous run both during the lockdown and as the economy is reopening. AMZN has led the tech rally to increase its market capitalization by about $90 billion. The eCommerce giant’s stock has seen more highs on several trading days as the economy reopened and its position to expand its subsidiaries with the acquisition of Zoox has helped to fan the embers of a brighter future for the company’s stock.
A look at Amazon’s current performance will give a good insight into the positive trend that has sparked analyst’s bullish projections. AMZN topped 3% to close yesterday’s trading session at $3,182.63. Today Amazon is also slightly up, trading at $3,184.46. Netflix Inc (NASDAQ: NFLX) has also been trending with an impressive upward trend with a possibility of closing above $523 on Friday. The duo of Amazon and Netflix has received new price targets from Wall Street analysts.
Amazon and Netflix Ride for New Highs
Citigroup has raised its price target on Amazon to a Street high of $3,550 per share from $2,700. The new price target implies an upside of more than 11% from Thursday’s close of $3,182.63. The analyst said Amazon’s share price will keep rising as the e-commerce market continues to grow. This projection seems more likely in the coming weeks as the rising cases of COVID-19 might boost customers’ reliance on the e-commerce giant in a bid to maintain social distancing. Should the economic situation as seen during the national lockdown repeat itself, Amazon (AMZN) may surmount this projected price figure.
Goldman Sachs analysts also tipped Netflix (NFLX) stock to rise to $670 from $540. This record high is possible owing to the movie production and streaming outlets’ increasing subscribers. While these projections are outrightly ambitious, the current position and innovative strategy of these tech companies can lend the framework to achieve this.
The uniqueness of the United States Stock market is in the diversity of the products and services offered by these companies. The diversity in product offering also has caused diversity in demand which also impacts investor’s decisions. As a result, the pandemic has caused the meltdown of some companies as much as it has favored others. While companies like Amazon (AMZN) and Netflix (NFLX) are seeing bullish days on Wall Street, others are trending down.