Deutsche Bank values Amazon at more than $1T
Record sales for Amazon on Prime Day despite website glitch
Fox Business Briefs: Sales in U.S. have exceeded sales from last year for same timeframe despite a glitch on the website that periodically kept shoppers from making purchases.
Deutsche Bank sees significant upside potential for Amazon shares, saying in a note Friday the e-commerce giant is its top pick out of all the large-cap internet stocks over the long-term and setting a share price target that implies a value for the company exceeding $1 trillion.
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In a research note, Deutsche Bank said it raised its price target for Amazon shares to $2,200, from $1,800. The new target represents more than a 20% upside from where shares closed on Thursday.
Analysts at the bank said they expected net sales to increase 39% year over year, citing the retailer’s grocery business with Whole Foods Market, recent acquisition of mail-order pharmacy company PillPack and its cloud services division as specific points of strength.
Concerns, including last-mile delivery challenges, were outweighed by all of the positive factors, which also included Prime momentum and opportunities to expand into new markets and industries.
During its 36-hour Prime Day this week – despite technical glitches that led to temporary site outages – Amazon said it sold more than 100 million units. It also added more members to the subscription service on Monday than on any other day in history. It is estimated that Prime already had more than 100 million members.
Deutsche Bank is not the only company that’s bullish on the e-commerce behemoth. Nine of the 48 brokerage firms that cover the stock now have price targets that value the company at more than $1 trillion.
On Wednesday, Amazon’s market value crossed $900 billion.
Shares are up more than 56% so far this year.
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