Amazon Stock Hits Another High As Pandemic Attracts E-Commerce Demand
Summary
Amazon (AMZN) has several drivers that should bring robust revenue growth and rising profit margins over the next several years, as the pandemic continues to boost online purchasing, a Wall Street analyst said Monday. Cowen analyst John Blackledge pushed his price target on Amazon stock to 3,700, from 2,750 and is among the highest on Wall Street. In a proprietary survey of Amazon users by Cowen, it found that the coronavirus "has driven meaningful increases in consumers online purchasing habits, likely due to a combination of store closures and personal social distancing efforts, and that dynamic has remained robust over the past few weeks, according to our survey," Blackledge wrote in a note to clients. With Amazon Prime, consumers pay an annual fee and receive numerous perks such as free shipping, music and video content. There are about 69 million Prime subscribers in the U.S. Blackledge also said Amazon Web Services, the companys cloud computing unit, is showing increasing momentum among enterprise customers due to the pandemic.