Will Amazon Really Be Worth $3 Trillion in Next Decade? -- Tech Roundup

Amazon (AMZN) - Get Report  stock is up 8% over the past five days since releasing earnings, but one has to wonder how much higher it can to. According to one participant at the Ira Sohn Conference, the e-commerce giant could be worth more than $1 trillion in the next decade.

Despite Amazon's impressive revenue growth and the fact that shares have climbed more than 1,800% over the past 10 years, you would think at some point there'd be a limit. Considering Apple (AAPL) - Get Report has the highest market cap at $524 billion, it seems like it will be tough for Amazon to more than triple its current market cap, which as of today stands at "only" $317 billion.

But that's exactly what Chamath Palihapitiya of Social Capital suggests -- and then some.

In fact, Palihapitiya makes the case that in the next decade, Amazon could be worth $3 trillion thanks to its rapidly growing Web Services business and continually growing retail business. He expects CEO Jeff Bezos to disrupt the IT world the same way it did the retail business. A bet against Amazon, is a bet against the Internet and the U.S. consumer. 

While it's hard to argue with Amazon's success, it's also tough to buy into the stock going up 10-fold in the next 10 years. I guess in 2026, we'll see how it turns out for Mr. Palihapitiya.

Shares of Amazon closed at $670.90 Wednesday, down a fraction of a percent.

Shares of Tesla Motors (TSLA) - Get Report are up 5.4% to $234.59 in after-hours after closing down 4.2% to $222.56 Wednesday. The reason? Earnings.

The auto company's earnings pleased investors, which was good considering the day also included Jim Chanos announcing a short position in the stock and the departure of two production chiefs.

Neither of those pieces are encouraging bits of news, although there was some of that, too: The company has started to ship its Powerwall product. The Powerwall acts as a giant battery, which can be powered by solar, so that customers can still have electricity at night or in the event of a power outage.

The company has already made some changes to how it plans to attack its Powerwall production, and even plans on updating it later this year. Aside from the Tesla vehicles, many investors look at this product as a potential game-changer down the line.

As costs decline, solar and the Powerwall become viable alternatives for more and more consumers. But in order to breakaway from the utility companies, consumers will need somewhere to store their solar-generated electricity. Who better than Tesla and CEO Elon Musk to solve the problem?

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.