Amazon stock coverage initiated with a “buy” rating
CNBC has reported that Pivotal Research has initiated coverage of Amazon (AMZN) stock with a “buy” rating and $1,920 price target, which implies a ~20% upside for the stock this year. According to Pivotal, as Amazon’s opportunities are unconstrained, its retail, advertising, and cloud computing businesses could continue to gain. As part of an effort to power its retail business, Amazon plans to open more physical stores, including hi-tech AmazonGo stores in airports, according to Reuters. Also, The Wall Street Journal has reported that Amazon may expand in the digital payment space by rolling out its Amazon Pay service more broadly.
Amazon’s growing presence in the advertising and cloud markets
In cloud computing, Amazon has maintained a strong lead, holding more than 34% of the global cloud market. In comparison, Microsoft holds ~14%, IBM (IBM) holds 7.0%, and Google holds 6.0% of the market, according to Synergy Research. Amazon’s cloud revenue rose 46% year-over-year to $6.7 billion in last year’s third quarter.