Amazon stock has skyrocketed this week as shares rose above $900 for the first time on Tuesday CNN Money reports.
Amazon stock is riding high with shares gaining 7 percent this week alone and 20 percent overall this year. This values Amazon at around $430 billion, twice the market value of one of its major rivals Walmart which is worth around $220 billion. Currently, the only companies worth more than Amazon are Apple, Alphabet, and Microsoft. Amazon is now worth more than both Facebook and the Warren Buffett-owned Berkshire Hathaway
This surge in Amazon’s stock price comes after the announcement last week that the company would be buying the Middle Eastern e-commerce site Souq.com. Amazon reportedly purchased the company which had been previously valued at around $1 billion for the price of $650 million. Amazon’s stock is now trading at 125 times the companies estimated earnings this year and 75 times the companies projected profits for next year.
Despite the high price of the stock, financial data and software company FactSet still considers the stock a good buy. Two dozen analysts have estimated the stock price target to rise above the current price with seven analysts putting it above $1,000. Daniel Salmon of BMO Capital Markets raised his price estimation on Monday to $1,200 while Shyam Patil of Susquehanna Financial Group raised his price target to $1250.
These estimations are approximately 40 percent higher than the current market price, if these predictions are proven true, then Amazon could soon hold a market value of nearly $600 billion. Considering the company’s rapid expansion into technology with their Amazon Alexa home device and it’s Sponsored Products business, Amazon could soon also be dominating the tech and advertisement world in the near future.