Amazon.com, Inc. (NASDAQ:AMZN) shares will inch closer to the $1,000 mark. Due to Amazon Prime’s surging popularity, the tech titan will see its shares go higher. What does this mean? According to Morgan Stanley, it’s time to buy even more shares in the online retail juggernaut. This leaves one question: will Amazon ever slow down?
Amazon.com, Inc. is a BUY for Morgan Stanley
If you’re looking for a stock to buy then perhaps it’s time to take a look at Amazon.
Morgan Stanley wrote in a note to clients on Wednesday that Amazon is a buy. This is because the tech giant’s Prime service is getting bigger. The number of subscribers have now reached 60 million, with 41 million of them located in the U.S. (Other reports say it’s more like 49 million Prime users in the U.S.)
These figures will help create better-than-expected earnings results. It was noted that 40 percent of Prime members spend a minimum of $1,000 on Amazon every year. Amazon understands how much of an impact Prime has on its revenues. This is why it keeps adding new features to get new subscribers and to keep old users satisfied.
With this data on hand, the firm’s analysts raised their 12-month price-target from $800 to $950. This means that Amazon’s shares could spike about $100 from where they are presently trading.
“AlphaWise [survey] shows continued strong Prime sub growth, now at 60mn members,” the note stated. “Amazon shares do not appropriately price Amazon’s eCommerce business, which we see as the major driver of profit improvement near-term.”
A majority of Wall Street analysts are bullish on Amazon. Even with the enormous gains Amazon has witnessed since 2011, nearly all analysts expect major gains. The likes of JPMorgan Chase and Co. and RBC Capital Markets forecast shares to hit $1,000 within the next 12 months.
Does this mean Jeff Bezos will add another $1 billion to his fortune?
Amazon.com, Inc. is Also Bullish on Social Media
Amazon bulls aren’t just located on Wall Street. The bulls can be found across the social media landscape. And their bullishness is appearing one tweet at a time.
A new report from Social Market Analytics found that Amazon shares had a spike in bullish mentions on Twitter Inc (NYSE:TWTR). Over the past week, investors have tweeted their optimism about Amazon. Specifically, investors had alluded to Amazon’s e-commerce model and cloud computing markets.
Moreover, it found that Amazon had the largest increase in bullish sentiment among major U.S. stocks in the past five trading sessions.
The firm looks at social media posts to create predictive trading signals.
Near the close of Wednesday’s trading session, Amazon shares jumped more than one percent to just under $845. Year-to-date, shares are up close to 25 percent. And there are no signs of Amazon slowing down at all.
Do you think Amazon has peaked? Think again.