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Amazon At $1,000 Is 'Just A Nice Trophy'

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Amazon At $1,000 Is 'Just A Nice Trophy'
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Shares of Amazon.com, Inc. (NASDAQ: AMZN) are trading within striking distance of the $1,000 per share mark and the company's CEO Jeff Bezos deserves a "trophy," at least according to Gene Munster.

Munster, the ex-Wall Street analyst turned venture capitalist, was a guest on CNBC's "Squawk on the Street" segment on Friday to offer his take on Amazon's march to $1,000 per share. He was quick to highlight the poor investor sentiment in 2014 when many had little confidence in the company's ability to generate a profit.

Bezos' Leadership, Amazon's Moves

Through Bezos' leadership, Amazon won over many investors since 2014, but the company isn't fully out of the woods just yet. Investors are now looking for Amazon to demonstrate margin improvements — but Munster isn't convinced this will be seen in 2017. He acknowledged this is an issue Amazon needs to deal with over the longer term, but this shouldn't deter investor for one key reason.

Munster continued that only around 8 percent of all items purchased globally is done so online. Ultimately this figure will soar to as much as 55 percent and could imply as much as $1 trillion in revenue for the e-commerce giant.

"So, when you think about these depressed margins, I think investors should be reminded about just how nascent online is today and the right thing for them to do is invest in the business," Munster concluded on the topic.

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Latest Ratings for AMZN

DateFirmActionFromTo
Dec 2017Evercore ISI GroupInitiates Coverage OnOutperform
Dec 2017Moffett NathansonInitiates Coverage OnBuy
Nov 2017NomuraMaintainsBuy

View More Analyst Ratings for AMZN
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