Shares of Amazon.com Inc. gained 1.8% in Tuesday morning trading after analysts at BMO Capital Markets raised their price target on shares to $1,600, the highest among analysts tracked by FactSet. The analysts, led by Daniel Salmon, are upbeat about Amazon’s advertising opportunities and believe that the ad business represents an $18 billion total addressable market “in the midterm.” He thinks Amazon could eventually generate 22% of its total gross merchandise value from direct response ads. Separately, analysts at Oppenheimer raised their price target to $1,450 and named Amazon their “top large-cap pick” for the year. “Amazon is best positioned among our large-cap universe to benefit from secular trends – shift to e-commerce, public cloud, automation and digital advertising – further supported by an improving global macroeconomic backdrop and domestic tax reform,” wrote the analysts, led by Jason Helfstein. Amazon shares have gained 11.6% so far this year, compared with a 4.8% gain for the S&P 500 Index .
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- The Moneyist: Two sisters want to disinherit their half-sister after their father dies without a will - November 18, 2018
- What student-loan debt affects the rest of your life (it’s not pretty) - November 18, 2018
- Credit scores reveal red flags about a person that have nothing to do with money - November 18, 2018