Market Overview

The Case For Amazon $2K

The Case For Amazon $2K
Related AMZN
Netflix Receives Its First Best Picture Oscar Nomination For 'Roma'
UPS Zeroes In On 'Super-Hubs,' High-Margin Shipments To Grow Business
Amid rulemaking heat, big tech firms spend record amounts on lobbying (Seeking Alpha)

For many investors, the case for, Inc.(NASDAQ: AMZN)'s stock appreciating to $2,000 per share seems like a far-fetched targer, but a major Wall Street firm sees the valuation as a real possibility.

The Analyst

Morgan Stanley's Brian Nowak maintains an Overweight rating on Amazon with a $1,250 price target. 

The Thesis

Nowak laid out the argument for Amazon's stock to be worth around $2,000 per share or roughly $1 trillion last year, and his core  thesis is essentially unchanged. (See the analyst's track record here.) 

The analyst presented the math behind a $2,000-per-share upside for Amazon in November as follows:

  • Core retail business: $600 billion or $815 per share.
  • AWS: $270 billion or $555 per share.
  • Subscription: $69 billion or $141 per share.
  • Other/Advertising: $55 billion or $112 per share.

The analyst revised his sum-of-the-parts valuation in a Friday note: 

  • Core retail business: $402 billion or $815 per share (3P business) plus $191 billion or $388 per share (1P business).
  • AWS: $273 billion or $555 per share.
  • Subscription: $69 billion or $141 per share.
  • Advertising/Other: $55 billion or $112 per share.

Price Action

Shares of Amazon hit a new all-time high of $1,305.45 on Friday and were last seen trading higher by more than 2 percent on the day.

Related Links

The Road To $1 Trillion: Amazon Can Beat Apple

Analysis: Amazon's Potential Still Largely Untapped

Photo courtesy of Amazon. 

Latest Ratings for AMZN

Oct 2018JefferiesMaintainsBuyBuy
Oct 2018Bank of AmericaMaintainsBuyBuy
Oct 2018BarclaysMaintainsOverweightOverweight

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Amazon 1P Amazon 3P Amazon Subscription AWS Brian Nowak Morgan StanleyAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (AMZN)

View Comments and Join the Discussion!

Latest Ratings

PANWBMO CapitalUpgrades240.0
UAAGoldman SachsUpgrades28.0
GPSGoldman SachsDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

MySize Soars Following CES Update

Neuroprofiler Uses Behavioral Psychology To Help Advisors Get Into Their Clients' Heads