Amazon (NASDAQ:AMZN) stock popped up 7.93% yesterday, marking its biggest single-day rise since December 2018. The stock closed at $3,196.84. The Amazon stock surge added $13 billion to Amazon CEO Jeff Bezos’s wealth, pushing his net worth to $189 billion and cementing his position as the world’s richest man. This year, Bezos has added $74 billion to his net worth, placing him ahead of Tesla CEO Elon Musk, whose net worth has gone up by $47 billion this year.
Amazon stock has climbed 73% in 2020, putting it at the top of the FAANG group (Facebook, Amazon, Apple, Netflix, and Google parent Alphabet). This year, Netflix and Apple stocks have climbed 55% and 34%, respectively, and Facebook and Alphabet stocks are up around 20%.
Goldman Sachs and Jefferies hike Amazon stock price targets
Amazon stock has soared this year, and analysts’ price targets suggest it has more room to run. Yesterday, Goldman Sachs and Jefferies both hiked their Amazon stock price target to $3,800, the highest on Wall Street. This figure implies an approximate 20% upside for Amazon stock from its current price.
According to Goldman Sachs and Jefferies, Amazon will continue to benefit from online shopping’s growing uptake. The coronavirus pandemic has driven more households to shop online, fueling sales in Amazon’s e-commerce division. Amazon derives most of its revenue from e-commerce.
Additionally, the pandemic is fueling sales in Amazon’s cloud business. Cloud services’ uptake has increased as companies seek ways to operate more efficiently during the pandemic. In fact, pandemic-driven cloud demand helped grow IBM’s cloud revenue by 30% year-over-year in the second quarter. Amazon is the world’s top cloud company, controlling about a third of the global market. The cloud business is Amazon’s main profit source.
Needham is even more bullish on Amazon stock than Goldman Sachs and Jefferies. Although Needham’s price target for AMZN is currently $3,200, it believes the stock could rise as high as $5,000 in the long term. That figure implies an upside of nearly 60% from Amazon’s current price.
Amazon confirms Prime Day delay
Amazon has confirmed it will be pushing back the 2020 Prime Day shopping event. Typically, Amazon hosts Prime Day in mid-July, but the coronavirus crisis has forced Amazon to delay the event to October in the US. Amazon has scheduled the event for August in India.
The Prime Day delay comes as Amazon is grappling with a surge in online shopping on its platform. The company is hiring more workers, and has teamed up with ride-hailing provider Lyft to expand its fulfillment capacity.
On July 30, Amazon plans to report its second-quarter earnings. AMZN stock has climbed about 30% since the company reported its first-quarter earnings on April 30.