Baird analysts upped its price target after assigning a stand-alone value of between $40 billion to $50 billion, or $95 per share, to Amazon web services, its cloud business segment.
The firm believes legacy IT budgets will keep shifting toward cloud providers and sees visibility for Amazon web services to become a $20 billion run-rate business by 2020.
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Baird maintained its "outperform" rating on shares of the online retail giant.
Also, Chinese ecommerce rival Alibaba Group Holding (BABA) said it is expanding its global footprints into the U.S. as it enters the cloud computing sector with its Linux-based mobile operating system Aliyun, according to TechCrunch.
This move marks Aliyun's first venture outside China, and expects to engage about 1.4 million cloud service consumers, TechCrunch added.
Alibaba currently operates four data centers in China as well as one data center in Hong Kong. By the end of 2015, the company plans to extend its reach throughout Southeast Asia and Europe.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."