The e-commerce giant is growing at a steady pace and the four-digit price may soon become a reality
Earlier this month, The Country Caller discussed analysis, which said that Amazon.com Inc. (NASDAQ:AMZN) would reach the $1000 mark before Alphabet Inc. While that may have been a bit too optimistic from valuation point of view, the company’s recent efforts suggest that the four-digit price may soon be a reality. Credit for all the efforts goes to CEO Jeff Bezos, who has been trying to expand Amazon’s presence lately outside its home country.
In the past one year, Amazon stock prices have risen by more than 30%, considering the company’s emergence as the top e-commerce organization in the U.S. Amazon’s presence into e-commerce and cloud-computing has helped the Seattle-based company to gain traction from investors. Its initiative for emerging economies is an added plus as these regions have a significant untapped potential.
The efforts of the company are welcomed by the Street as well. Many brokerage houses have raised their price targets for the company. However, their targets are still with three-digit price. Now the point arises that how soon can it reach that mark? The trend for the past one year suggests that it might take another year for it to reach that point.
Many fundamentalists would argue about why Amazon.com is so overrated that we talk of such high prices, when it is highly overvalued. Maybe they still insist that Amazon should trade at lower multiples as the current multiple is already very high. However, the bullish side of the coin is always looking at the future of the company, which is very bright in their opinion.
Amazon currently dominates the U.S e-commerce market and can continue to perform in emerging markets too. Its initiative in logistics would help it to improve its financial position. Thus, the possibilities of the $1000 mark are much intact. Amazon shares were up 1.08% to $714.01 in yesterday’s trading session.