Investors were most likely happy to hear the announcement by Goldman Sachs (GS) today that they are raising their price target by an additional 28% from Friday’s $3,000 price target. This increase would place Amazon (AMZN) shares at $3,800.
Goldman Sachs financial analyst Heath Terry explained that they believe Amazon to be well-positioned to “accelerate e-commerce growth.” Reports are currently showing that Amazon’s consumer spending has increased year-over-year since the end of April this year by 60%. Hedging on these numbers and other economic spending trends being what they are, Goldman Sachs stated that Q3 growth is also expected for Amazon.
This year, in May, Amazon’s price target was raised to $3,000 by Terry based upon expectations of a continued growth curve. To support the price hike for Amazon, Terry explained that Amazon revenue projections for 2020-2022 were currently 3% over what was initially projected.
There is a possibility that Amazon’s profit reports won’t reflect as much of an increase, however, as indicated by Terry. This statement stems from the fact that Amazon has had to make considerable changes and undertake operating costs associated with maintaining operations throughout the coronavirus pandemic.
While Amazon is doing well, its stock gains have yet to catch up to other tech industry companies over the past year. Apple (AAPL) gains were over 90%, for instance, and Netflix (NFLX) stocks were up by 59%. Amazon gains over the past year were 56%.
At the time of this article’s writing, Amazon stock was up by 6.40% to $3151.46 and continuing to rise.
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