Amazon had a news-filled week last week culminating with shares flirting with a new high in trading Friday (March 31).
According to a report, shares of the eCommerce giant were lifted by a bevy of news, including its acquisition of Souq.com, the Middle East ecommerce company; a new brick-and-mortar retail expansion; the end of one of its acquisitions that didn’t turn a profit; and making a push into call center technology. The stock was also helped by Barclays, which last week initiated coverage of Amazon and set a price target of $1,120 a share. When initiating coverage of Amazon, Barclays said earnings will come in much higher than Wall Street expectations for 2017 and that Amazon will be worth $1 trillion down the road.
But it’s not only a good week for Amazon in terms of its share price. The report noted Amazon’s stock is up greater than 4 percent in March. Thanks to the surge in shares last week, Amazon Chief Executive Jeff Bezos is now the second richest person in the world, with Bill Gates in the first spot. The report noted the strong showing for Amazon in 2017 is a big difference from 1999, when Barron’s predicted Amazon would go under.
Last week Amazon.com inked a deal to buy Souq.com, the Dubai online retailer, reported Reuters. Citing sources familiar with the deal, Reuters reported Amazon is purchasing 100 percent of Souq.com. Both companies declined to comment to Reuters. Reuters reported that Goldman Sachs acted as adviser for Souq.com on the deal to help arrange it. By acquiring Souq.com, Amazon gets one of the most well-known online retailers in the Middle East. Souq.com sells everything from consumer electronics to household products. It also sells fashion and other items on its website. The price tag for Souq.com wasn’t disclosed, noted the report.