The logo of Amazon is pictured inside the company’s office in Bengaluru, India, April 20, 2018. Picture taken April 20, 2018. REUTERS/Abhishek N. Chinnappa ( Reuters )
Amazon appears to be having an amazing year. Shares crossed the $2,000 level on Thursday for the first time, this as the stock, which have gained over 70 percent this year, sits at a record high.
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The online retailer got a push one day after analysts at Morgan Stanley dramatically hiked their price target on Amazon, expecting shares will be valued at $2,500 in 12 months. If Morgan Stanley’s price forecast becomes reality, assuming that shares outstanding remain constant, then Amazon will have a $1.2 trillion market cap.
Apple, which became the first U.S. publicly traded company to reach the $1 trillion mark earlier this month, now has a market cap around $1.05 trillion and is the second-best performing Dow component this year with a gain of 32 percent.
Amazon’s new milestone comes amid a public spat with former presidential hopeful Sen. Bernie Sanders. Amazon took to its blog early Wednesday to hit back at “inaccurate and misleading” criticisms from Sen. Sanders in an unusual political post from the tech giant. The Independent Vermont senator penned a post of his own later in the day, renewing criticisms that the company does not pay employees enough and voicing concern over working conditions at fulfillment centers.
“Bottom line: the taxpayers of this country should not have to subsidize employees at a company owned by Mr. Bezos who is worth $155 billion. That is absurd,” Sanders wrote.
Amazon refuted the senator’s claims that it doesn’t pay lower-level employees a livable wage and therefore workers have to rely on government assistance programs, like the Supplemental Nutrition Assistance Program, at the expense of other taxpayers.
Politics aside, not all analysts are quite as bullish on Amazon as Morgan Stanley. The Thomson Reuters compiled consensus 12-month price target on Amazon is $2,091.29, slightly higher than where shares were trading on Wednesday.
The Thomson Reuters compiled 12-month price target on Apple is for $214.69, which implies shares will pull back a little bit from their current price point.
Assuming those average price targets and an unchanged number of shares outstanding, then in 12 months Amazon will have a market cap of $1.014 trillion and Apple will be worth $1.055 trillion.
|I:COMP||NASDAQ COMPOSITE INDEX||8088.3063||-21.38||-0.26%|
|I:DJI||DOW JONES AVERAGES||26056.68||-67.89||-0.26%|
The rally in shares of Apple and Amazon have helped push the Nasdaq Composite past the 8,000 mark for the first time. The tech-heavy benchmark has gained 17% this year.
FOX Business reporters Leia Klingel and Brittany De Lea contributed to this report.
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