Amazon stock, which has risen more than 50% in 2018, gained nearly 1% today to close at a record high of $1,813.03.
The tech giant’s stock chart this year is taking on a distinct hockey stick-like quality as it moves to disrupt the pharmacy, grocery and Internet backbone businesses while continuing to post gaudy financial results. It will report second-quarter numbers on July 26.
Shares gained 5% this week alone as tech stocks staged a couple days of rallies (much less so today) and are up an eye-popping 52% in 2018 to date.
Amazon’s surge has followed the latest in a series of bullish reports from Wall Street analysts. Canaccord Genuity said it has “the most robust and durable growth outlook” of all of the FAANG companies (Facebook, Amazon, Apple, Netflix and Google). The firm upped its 12-month price target to $2,000, which at this rate might come during the summer.
“Amazon’s rapidly growing scale of investment is strengthening long-term competitive barriers, and this includes a robust outlook for Prime subscription growth,” Canaccord analysts Michael Graham and Austin Moldow wrote in the research note.
Hollywood has eyed Amazon intently as it refines its Prime Video strategy, which is in a transitional stage as new top management sets the tone. Whatever wobbles there might have been lately, and whatever the margin Netflix currently enjoys in the streaming wars, the company’s growth and scale are so massive that it can afford to fiddle until it gets it right.
Consider these latest numbers, out today. A new report from eMarketer projects Amazon’s share of total e-commerce sales at a gargantuan 49.1%. No other company is in the same ZIP Code — eBay is forecast at 6.6%, Apple 3.9% and Walmart at 3.7%. The rest of the members of the top 10 are expected to eat up just tiny slivers of the pie, between 1.1% and 1.5% of the total.