New York: Amazon.com Inc. was on course to exceed $1 trillion in market value again after results beat expectations, with analysts applauding the popularity of the e-commerce giant’s one-day shipping initiative and the performance of its cloud-computing business.
The shares surged 8.7 per cent in US pre-market trading after reporting what Robert W. Baird & Co. analysts called an “impressive quarter from top to bottom.”
Goldman Sachs analysts pointed out that it was the first time the company beat the upper end of its revenue guidance since the first quarter of 2018.
The results sparked a rush on Wall Street to raise price targets for the stock, with RBC Capital Markets analysts giving it a new Street-high target of $2,700, implying 44 per cent upside from Thursday’s close.
In surpassing the $1 trillion mark — something it also did briefly back in 2018 — Amazon will be joining Apple Inc., Microsoft Corp. and Google-parent Alphabet Inc. on an exclusive list of US tech giants to have reached that valuation.