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.


New PYMNTS Study: Subscription Commerce Conversion Index – July 2020 

Staying home 24/7 has consumers turning to subscription services for both entertainment and their day-to-day needs. While that’s a great opportunity for providers, it also presents a challenge — 27.4 million consumers are looking to cancel their subscriptions because of friction and cost concerns. In the latest Subscription Commerce Conversion Index, PYMNTS reveals the five key features that can help companies keep subscribers loyal despite today’s challenging economic times.