Bloomberg
Amazon.com Inc’s valuation briefly topped $1 trillion after its results beat expectations, with analysts applauding the popularity of the e-commerce giant’s one-day shipping initiative and the performance of its cloud-computing business.
Shares surged as much as 9.9% in their biggest intraday gain since 2017 before paring back gains to trade below the $1 trillion threshold. The stock hit a record high after reporting what Robert W Baird & Co analysts called an “impressive quarter from top to bottom.â€
Goldman Sachs analysts pointed out that it was the first time the company beat the upper end of its revenue
guidance since the first quarter of 2018.
The results sparked a rush on Wall Street to raise price targets for the stock, with RBC Capital Markets analysts giving it a new Street-high target of $2,700, implying 44% upside from last week’s close. The average target currently sits at $2,417, compared with under $2,200 a week ago.
Had it closed above $1 trillion, Amazon would have joined Apple Inc, Microsoft Corp and Google-parent Alphabet Inc on an exclusive list of US tech companies to have reached that valuation.