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.
- Amazon's Move Into Retail Pharmacy Could Put 10% of Industry Profits at Risk
- Amazon's Latest Cloud Announcements Aim to Kill Two Birds With One Stone
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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