Can Anything Stop Amazon Stock?
2020 isn't even halfway over, but we can already crown Amazon (NASDAQ: AMZN) as one of the year's biggest winners.
Shares of the tech giant are already up 43% year to date, as it's emerged as a popular pick in the coronavirus era. Nearly all of its businesses seem to be benefiting from the crisis that's forced stores and offices to close, leading to increased demand for e-commerce, cloud computing, and video streaming. That 43% gain delivered an increase of about $400 billion in market cap, a larger value than almost any other U.S. company.
One analyst now thinks the stock could hit $5,000 over the long term, nearly doubling from its current price around $2,600. Needham analyst Laura Martin said the company would benefit from a "hidden value multiplier" that allows the company to expand into new and adjacent markets like groceries, media, and cloud computing. She also sees Amazon transitioning to a service provider based on higher-margin businesses like Amazon Web Services (AWS) and its third-party marketplace, and noted that revenue from services grew from 28% to 43% over the last five years. She values Amazon's media business at $500 billion and AWS at $560 billion, which alone almost account for the company's total market cap at $1.3 trillion.
Source Fool.com