Market Overview

Amazon Surges to New All-Time High

Share:
Amazon Surges to New All-Time High

Online retailer Amazon (NASDAQ: AMZN) continued to surge on Monday, up around 2 percent for the day. Shares traded over $274, a new all-time high for the stock.

Former Citigroup analyst Mark Mahaney told CNBC he would be rating Amazon as one of his top buys in 2013. Mahaney is now working for RBC Capital.

Additionally, the company had several bouts of good news last week, perhaps leading to a positive hangover.

On January 7, Morgan Stanley upgraded the stock to Overweight.

Then, on January 9, IT World ran a story on the Kindle's success in Japan after its October launch.

A survey had indicated that Amazon had captured 40 percent of the e-book market in the Asian country. Its closest competitor, Kinokuniya, had 13.4 percent.

The Japanese e-book market was valued at $720 million in the year through March of 2012, and is expected to triple in the next five years. Thus, if Kindle remains the go-to e-reader in Japan, this market could continue to support Amazon.

Additionally, on January 10, Amazon announced the launch of Amazon AutoRip.

At no extra charge, Amazon will offer mp3 versions of their CD purchases in users' Cloud Libraries, allowing them to listen instantly instead of waiting for the physical item to arrive. It will also backdate this service for CDs purchased since 1998.

This move could help the firm compete with Apple's iTunes service, possibly taking market share away from the enormously popular creation of the late Steve Jobs.

However, there has been some negative news for the Seattle company, most notably a report that Best Buy (NYSE: BBY) has seen a boost in sales in states where Amazon has begun collecting sales taxes. If this trend continues, it could leave investors jittery about Amazon's ability to continue to dominate the brick-and-mortar retailer.

Shares of Amazon traded near $274 on Monday.

Posted-In: Analyst Color News Intraday Update Analyst Ratings Movers Tech Media Trading Ideas Best of Benzinga

 

Related Articles (AMZN + BBY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
NKEGuggenheimMaintains100.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

UPDATE: Deutsche Bank Upgrades United Parcel Service to Buy Following Suspension of Acquisition

China's Pollution Woes Could Boost These ETFs