Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.
Amazon (AMZN) stock is trading at over $3,000 now. Analysts say that the stock has enough power to move even higher soon.
Amazon.com Inc (NASDAQ: AMZN) stock has shown an impressive run this year, gaining 57% year to date. Some market analysts say the stock value would go even higher. The company’s stock made gains on Thursday reaching another all-time high of $2,955.56. The recent gains by the stock have boosted the value of Jeff Bezos‘s wealth by $57 billion. Today Amazon stock has managed to hit its previous record. Having gained over 4% during this trading session, AMZN is trading at $3,014 at the time of writing.
The recent gains of Amazon even though spectacular has traders speculating on more bullishness. According to Nancy Tengler, who is the chief investment officer at Ladder Tengler, Amazon stocks are expensive but not to the point that investors would consider it too expensive.
“The company is benefiting from super-fast sales growth, up 26% year over year, and that’s been able to support the price at these levels, according to our valuation work.”
The fast sales she referred to are the result of a spike in online sales as a result of the coronavirus pandemic. The analyst said that they are keeping a close eye on the Amazon stock to ascertain the right entry point. This is an allusion to the belief that the value of the stock would rise further.
Amazon May Set Another Record Soon: Catalysts to Watch
Amazon has two critical catalysts that investors watch out for. The first is a margin that has compressed due to rapid growth. The other is Amazon Web Services (AWS) which would see more sales as the service is expecting military contracts. Its efforts indicate that these would get through. The latest effort is the effect of the impact of Microsoft‘s cloud business which has had faster growth than the Amazon subsidiary.
Another analyst, Craig Johnson said there was nothing in the charts that showed that Amazon stock would surge in value as has happened.
“On a weekly basis, the shares not too long ago broke out of a big multiyear consolidation. Your momentum is very positive,” he said.
Craig said that Amazon stock has outperformed S&P 500. He believes it is what portfolio managers need for their balancing acts to meet up with the expectations of investors. He projected that the company’s stock could reach $3,400-$3,500 intimately. His views echo that of many analysts who have mostly turned bullish with Amazon beating all expectations for the year.
His prediction represents a 21% increase from Thursday high, pointing to the belief that Amazon stock would continue to be in demand despite the gains.