Amazon stock just continues to soar. For the first time ever on Monday, the Seattle-based retail empire saw its share price rally above $3,000.
The ongoing global health crisis has affected businesses across multiple segments, but Amazon has become a lifeline of sorts for millions of consumers who rely on its online shop, Cloud computing services, digital media products, and more in the midst of the COVID-19 pandemic. This year, the company's stocks have surged almost 60 percent.
According to Bloomberg, the stock price rise is meeting or going past many Wall Street observers' estimates – the analysts' average price target is $2,810.
Shares ended up 5.77% at $3,057.04 on Monday, their fourth straight daily advance. Amazon's stock rose over 13 percent in the four-day push and has grown around 80 percent from a March low, resulting in a market valuation of $1.5 trillion. The company now joins tech titans like Apple and Microsoft above that level.
The online retail behemoth has seen rising demand for its e-commerce services during the crisis, which has shut brick-and-mortar competitors and led more customers to work remotely. Several market analysts project these trends will outlast the coronavirus turmoil, strengthening Amazon's market share and triggering more rallies.
The Jeff Bezos-led retail giant is capitalizing from super-fast revenue growth, up 26 percent year-on-year, "and that has been able to support the price at these levels, based on our valuation work," Nancy Tengler, chief investment officer of Laffer Tengler Investments, told CNBC's 'Trading Nation', Thursday as reported by Ben Winck of Business Insider.
Amazon is poised for solid earnings through the year as online shopping activity grows, but Piper Sandler senior technical research analyst Craig Johnson sees stocks registering huge advances over the next few weeks. The company's shares just breached a major multi-year consolidation and it is showing very strong momentum as it heads into its July 23 earnings report, he disclosed on CNBC.
Amazon remains a huge favorite of traders on Wall Street. Only one company monitored by Bloomberg recommends selling the company's stock, compared with the 52 that support buying it. Four companies have the equivalent of a Hold rating.
According to Comparisun, a company that allows small- to medium-sized firms to compare different services and business products, the world's first trillionaire will most likely be Amazon founder and chief executive officer Jeff Bezos. Their estimates sho Bezos reaching trillionaire status in six years. Alphabet, which owns search giant Google, also breached the $1 trillion mark on Monday.
