Apple and Amazon were seen as contenders in the race to the first publicly traded U.S. company worth $1 trillion company, and while Apple won the race to that milestone, it is possible that it won't maintain its market capitalization dominance over Amazon.
Analysts at Morgan Stanley on Wednesday dramatically hiked their price target on Amazon expecting shares will be valued at $2,500 in 12 months. If Morgan Stanley’s price forecast becomes reality, assuming that shares outstanding remain constant, then Amazon will have a $1.2 trillion market cap.
Apple’s current market cap is around $1.05 trillion.
Not all analysts are quite as bullish on Amazon as Morgan Stanley. The Thomson Reuters compiled consensus 12-month price target on Amazon is $2,091.29, slightly higher than where shares were trading on Wednesday.
The Thomson Reuters compiled 12-month price target on Apple is for $214.69, which implies shares will pull back a little bit from their current price point.
Assuming those average price targets and an unchanged number of shares outstanding, then in 12 months Amazon will have a market cap of $1.014 trillion and Apple will be worth $1.055 trillion.