Just how high can Amazon.com, Inc. (AMZN) go? It depends on who you ask, and apparently, when you ask them.
On Tuesday, analysts at Goldman Sachs slapped a then-Street high price target of $1,450 on Amazon stock, which is already up 55% so far on the year. That's no sneeze for a company that sports a market cap north of $560 billion. In any regard, Goldman was quickly outdone by the analysts at D.A. Davidson, who assigned a $1,500 price target on Thursday.
But rest assured, we will not go into the weekend without a third record price target for the internet giant. Wells Fargo analyst Ken Sena bumped his price target to $1,525 from $1,430. He argues that Amazon deserves to go higher because of its ballooning Amazon Web Services business. The fast-growing, highly profitable unit has quickly become a talking point surrounding the company, which was once only known for its online retail business and Prime membership.
Further "outer-year estimates" for AWS should justify a higher sum-of-the-parts valuation for Amazon, Sena argued. He also pointed out the "very successful" conference from AWS in Las Vegas this week. Not to mention the "record-breaking early holiday sales data." Additionally, the potential for Amazon to enter the healthcare space is another catalyst for Amazon.
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So will Amazon stock go higher? That seems to be the consensus on Wall Street. Currently, shares are trading near $1,161, down more than 1% Friday in what has surprisingly been a weak week for Amazon despite record Cyber Monday numbers. Even more perplexing might be the strong rallies in traditional retailers like Macy's (M) , Kohl's (KSS) and Target (TGT) . Heck, even Kroger (KR) is on the move after record Black Friday results and better-than-expected earnings.
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