Amazon hits new high on this crazy big $1,000 price target from Wall Street
Amazon shares have touched an all-time high after getting a serious upgrade from one Wall Street analyst.
Bernstein has upped its price target for the stock to $1,000 (£694) from $770, sending stock up nearly three per cent to $699 per share.
"[W]e are bullish in the short, medium, and long term and think we may see margins expand much faster than they have in the next two years than they have in the last two. … We think consensus estimates are shockingly low in the next two to three quarters and even lower four to six quarters out," said Carlos Kirjner in a note on Tuesday.
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If that prediction was right, that would mean stock rising more than 40 per cent from today's high.
The medium analyst price target consensus is $800, and the highest before Bernstein's raise was $915.
Kirjner added: "We think Amazon's businesses are now so large, fast-growing, and profitable that it is harder and harder for the company to find new areas of investment to keep up with the growth in gross profits."
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At the same time Amazon announced the launch of a new video service that's similar to YouTube. Amazon Video Direct (AVD) will rival Google and other video sites such as Vimeo and Google, but will also increase its original programming in its battle with Netflix and other streaming services, partnering with the likes of Mattel and the Guardian.
Meanwhile, Amazon boss Jeff Bezos last week sold off one per cent of shares he held in the firm, regulatory filings revealed last week, netting himself a cool $671m.