JPMorgan thinks Amazon is a $1.1T company – here’s when it will reach that milestone
Amazon’s shares are worth $2,200, according to JPMorgan Chase, with analysts boosting their 12-month price target on the company to $2,200 per share from $1,900.
Assuming 484 million shares outstanding, as indicated in Amazon’s second-quarter financial statements, this would put the company's market capitalization at $1.06 trillion.
JPMorgan isn’t the only company boosting its share price target on Amazon. BMO Capital raised its expectation to $2,250 per share from $2,000. Piper Jaffray hiked their outlook to $2,100 from $2,075 and Wedbush raised its price target to $2,100 from $1,800. All of these estimates imply a company with a greater than 1 trillion market cap. Price targets are usually on a 12-month basis, therefore, if the banks are correct, Amazon could reach this milestone in the next year.
Amazon has been in a race with Apple to see which company would be the first to reach a $1 trillion market cap. According to Marketwatch, the average price target on Apple is $201.79. Assuming outstanding shares of 4.915 billion, this pegs Apple’s market cap at $991.87 billion.
The price target upgrades come after the e-commerce giant reported blowout second-quarter earnings. On Thursday, Amazon said it earned $5.07 per share, more than double analysts’ estimate of $2.50. Revenue jumped 39% to $52.89 billion, slightly below the consensus estimate of $53.41 billion.
