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Chief Executive Officer of Amazon, Jeff Bezos, tours the facility at the grand opening of the Amazon Spheres, in Seattle, Washington on January 29, 2018.
Amazon’s stunning growth in new markets will boost the company’s shares, according to a Wall Street firm.
Jefferies reiterated its buy rating for Amazon shares, predicting the company’s ad Business sales will surge over the next five years.
“We think advertising could become Amazon’s most profitable revenue stream and similar to AWS [Amazon Web Services] afford opportunities to invest back into the core biz,” analyst Brent Thill wrote in a note to clients Tuesday. “We forecast Amazon reaching $1 trillion in market cap by 2022.”
Thill raised his price target for Amazon shares to $1,850 from $1,750, representing 16 percent upside to Monday’s close. The company has a market value of nearly $770 billion.
The analyst predicts Amazon’s ad Business will grow its sales by 43 percent per year reaching $22 billion in revenue by 2022 versus $4 billion this year. He said consumers already use Amazon for more than 50 percent of all product searches in the U.S.
Amazon shares traded roughly unchanged Tuesday after the report.
Source : CNBC