, Inc. Stock Euphoria Continues After Earnings Beat

Updated on

Amazon stock has received a host of price target increases since last week’s decisive beat over earnings estimates. The online retailer’s shares are still climbing today, and at least one firm has raised its price target up over $900 per share.

Amazon stock price target to $915

In a report dated April 29, JPMorgan analyst Doug Anmuth and team reiterated their Overweight rating and raised their price target for Amazon stock from $822 to $915 per share. They believe that there were many components to the company’s earnings beat last week, including every piece of the puzzle from the original online retail business to the newer cloud business.

They said clearly the first quarter earnings results show that the company “has reached a level of scale, efficiency, & gross profit dollars that it can continue to invest aggressively in the business while also delivering material profits.’ They add that Amazon hasn’t seen CSOI margins this high since the second quarter of 2010. EGM revenue accelerated as well, and the Prime ecosystem is helping boost retail results while Amazon Web Services continues to see strong growth.

Margin fears alleviated

UBS analyst Eric Sheridan and team raised their target for Amazon stock from $720 to $785 and reiterated their Buy rating. They also highlighted the across-the-board strength and said that it counters the recent worries about the company’s many investments and margins. They liked the beat on CSOI and margins, the acceleration in paid unit growth, third-party mix, and comments about increasing Prime selections through third-party Fulfillment by Amazon.

However, they were “less positive on” management’s comments about paying more for original content in the next few quarters and the lack of share repurchases after the board authorized a $5 billion program.

Mixed feelings on Amazon Web Services

Canaccord Genuity analyst Michael Graham and team also reiterated their Buy rating on Amazon stock and raised their price target from $750 to $765 per share. They also liked the fact that the company’s revenue beat guidance in all segments and that Media and EGM growth sped up year over year. They also like that Amazon Web Services surpassed the $10 billion level in run rate and continues to show more than 60% growth.

However, they’re still concerned about the company’s international operations because they still face significant currency headwinds. They also see the pricing dynamics of AWS as a risk to their thesis, although those dynamics have not been disclosed, because the SOI margin for the segment declined a bit sequentially.

Amazon stock climbed by as much as 2.54% to $676.32 per share during regular trading hours today.

Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!