Shares of Amazon (AMZN - Free Report) added more than 1% in early morning trading Thursday after analysts from Canaccord Genuity lifted their price target for the popular stock to $2,000 from $1,800.
Canaccord’s updated call represents a 14% upside to Amazon’s closing price on Wednesday and would give the e-commerce behemoth a market capitalization of $970.5 billion. The firm cited Amazon’s massive scale and strategic investments as key reasons to be bullish.
“We think fundamentals remain as strong as ever as e-commerce business continues to grow nearly 30% ex-Whole Foods, and AWS remains the market leader, accelerating growth to almost 50% last quarter,” wrote Canaccord’s Michael Graham in a note to clients.
Thursday’s gains add to AMZN’s strong momentum. The stock has now gained over 50% so far this year, plowing through periods of market-wide volatility with ease. Amazon is now quickly gaining on Apple (AAPL - Free Report) in the race to the historic $1 trillion market cap threshold.
Apple still has a cool $90 billion lead, but the stock has flat lined over the past two months, giving Amazon—as well as Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) —some hope of reaching the threshold first.
The race to $1 trillion is now heading into an integral stretch as investors prepare for a busy Q2 earnings season. Amazon’s latest quarterly report is due out towards the end of the month, and Wall Street will hope the Jeff Bezos-led company can report another period of remarkable growth.
Our latest Zacks Consensus Estimates are calling for Amazon to post adjusted earnings of $2.50 per share and total revenue of $53.5 billion. These results would represent year-over-year growth of 525% and 41%, respectively.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>