For the first, Amazon.com, Inc. (NASDAQ:AMZN) traded up above $800.
CNBC reported that the e-commerce giant’s stock closed at $804.70 on Thursday. The stock hit an all-time intraday high of $805.89 earlier in the day. Shares rose 1.9% for the day.
On Thursday, the online retailer also announced that it is planning to launch Handmade, its artisanal marketplace, in Europe.
The company’s shares are up nearly 17% for the year. The stock has gained nearly 49% during the last 12 months.
The e-commerce giant now has a market cap of more than $380 billion, the fourth largest in the world, trailing only Apple, Alphabet, and Microsoft, Business Insider reported.
Last year, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization.
Why Investors Are Bullish On Amazon?
Founded as an online bookstore 1994, Amazon has expanding over the past years. The company is investing on shipping and transportation, hiring people in the UK, and building drones for home delivery.
The e-commerce behemoth has reported record profits for three straight quarters. The rise in the company’s stock can be attributed to its consistent growth and dominance in both the e-commerce market and cloud computing business.
Amazon Web Services, the company’s cloud computing business, is generating $10 billion in annual revenue with a solid 25% margin, according to the Business Insider report.
During the second quarter, the company’s sales rose 31% to $30.4 billion, versus $23.2 billion in the same period last year.
Amazon is heading to $1000
Analysts expect that the e-commerce giant could hit $1000. RBC Capital upgraded the company’s price target to $1,000, noting strong growth across almost all platforms.
Evercore ISI is also bullish on the e-commerce company. The firm has a “buy” rating and $1,015 price target on AMZN, The Street reported.
Sena, who appeared on CNBC’s “Power Lunch” on Thursday, said: “When you look at Amazon’s retail business, I think what we’re trying to argue is that that is very much a cloud business.”
The e-commerce company is expanding into “audience platforms” and can “leverage automation into supply chain,” as well as “use machine learning for the sake of recommending to you what you want,” the analyst added.