JPMorgan thinks Amazon is a $1.1T company – here’s when it will reach that milestone
Circle Squared Investments' Jeff Sica, Point View Wealth Management's David Dietze and FBN's Suan Li on the outlook for Amazon and Facebook.
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.