Amazon Shares Hit All-Time High; Market Cap Surpass $900B

Amazon market cap

Amazon.com Inc. (NASDAQ:AMZN) shares hit an all-time high of $1,851 early today before losing some value later in the trade. Amazon market cap breached $900 billion level for the first time following the announcement that Prime Day was the most significant shopping event in its history. The company says prime members purchased more than 900 million products across 17 countries.

Amazon market cap
Source: finviz

Investors are applauding the boost in its sales and the massive growth in its prime members. Amazon’s share price rose 51% since the start of this year, extending the twelve-month rally to 80%.

First Quarter Numbers Boosted Investors’ Sentiments

Amazon’s share price rally has been supported by its substantial growth in its financial numbers. The company has generated $51 billion of revenue in the latest quarter, representing a gain of 43% from the same period last year. Amazon’s Web Service (AWS) performance has been adding to its sales momentum; the AWS revenue enlarged 49% year-over-year to $5.1 billion.

The company’s management has also been smoothly converting the significant revenue growth into big profits. Its first-quarter operating income jumped 92% to $1.9 billion from $1.0 billion in the same period last year.

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Jeff Bezos, Amazon founder and CEO says “the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth.”

Amazon Market Cap Breaches $900B: Outlook and Price Target Support Share Price Gains

The online specialty retailer expects second-quarter revenue to hover around $54 billion, representing the growth of 42% compared to the same period last year. Its operating income is likely to be between $1.9 billion, sharply higher from $628 million in second quarter 2017.

Market analysts are showing confidence in future fundamentals. Canaccord Genuity has raised Amazon’s share price to $2,000 from the earlier target of $1800 per share. Morgan Stanley has also raised AMZN shares outlook to $1900, while RBC analysts claim Amazon’s Whole Foods business could double in the next 5 to 10 years.

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