WEDBUSH: Amazon's share price could explode by more than 35%
Markets Insider
Wedbush Securities just put a $1250 price target on Amazon's stock.
On April 24, Wedbush Securities analyst Michael Pachter circulated a first quarter preview to clients to reiterate his "Outperform" rating and raise his price target on shares of the retail giant from from $900 to $1250. That would represent a 38% increase. According to Factset, Pachter now has the highest price target of any analyst among the 46 that cover Amazon.
Amazon reports earnings after the close Thursday, April 27. Wedbush predicts Amazon will beat analyst estimates on both the top and bottom lines. Wedbush sees Amazon reporting $35.97 billion in revenue versus expectations of $35.30 billion, and predicts earnings of $1.06 billion versus consensus of $900 million.
Wedbush says that Amazon Web Services in the "growth engine" for Amazon and the key to expanding margins. In the earnings preview, Wedbush says it expects margin expansion driven by AWS and held back slightly by content spending for Amazon Prime Video.
Wedbush notes one interesting future catalyst for the stock may be the new, "Amazon Cash" program where consumers can transfer cash to their Amazon account by having participating retailers scan the user's personal barcode. The program is targeted at consumers who don't have a credit or debit card.
Additionally, Wedbush is excited about Amazon's flourishing lineup of original content, including feature length films like the critically acclaimed, The Lost City Of Z.
Wedbush
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas