Amazon

Amazon’s Market Value Projected To Exceed $1T Once Again

Amazon might become a part of the so-called trillion-dollar club once again.

The club is the collection of firms that have a market value of at least $1 trillion and encompasses tech giants Microsoft and Apple along with Google-parent Alphabet. Microsoft has a $1.27 trillion market value, Apple has a $1.38 trillion market value, and Alphabet has an approximately $1 trillion market value, CNBC reported.

Amazon first became a part of the trillion-dollar club in September 2018. However, it has lost a portion of its value as of that time due to heavy investments in one-day delivery and last mile, grocery delivery, and Amazon Prime Video streaming content.

“Amazon’s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest,” Morgan Stanley Equity Analyst Brian Nowak said, according to the report.

The average 12-month price target for the eCommerce firm is $2,188 per share, which marks a 16.5 percent upside to its share price as of now. Wall Street analysts, as a result, foresee that Amazon’s market value will arrive at approximately $1.08 trillion by the close of the year. But the report points out that the forecast doesn’t account for share buybacks.

UBS increased its Amazon price target from $2,100 to $2,305, which was over 20 percent upside from the closing price of $1,877 per share on Thursday (Jan. 16). The investment bank is bullish on Amazon’s investment in one-day Prime shipping that the eCommerce firm said will likely bring higher purchase frequency.

In June, Amazon announced that it was growing its one-day delivery with Amazon Prime, adding over 10 million products and opening it up to members without a minimum purchase amount. The eCommerce company said at the time that millions of Prime members were already tapping into one-day delivery. Shoppers were using the service for last-minute birthday presents, beach towels and sunblock, among many other products.

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