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Why One Analyst Thinks Amazon (AMZN) Stock Could Reach $2,000

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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.

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