Securities, April 16th, senior technology analyst Brent Thill (Brent Thill) analyzed the data of e-commerce giant (NASDAQ: AMZN), and believes that from the current valuation level, the company is undervalued by 70%. In other words, one day Amazon’s market value may reach 3 trillion US dollars, compared with the current 1.72 trillion US dollars.
As of Wednesday’s close, Amazon’s stock price fell 1.97% to close at $3,333, hitting a high of $3,404.13 during the session. In the past 52 weeks, Amazon’s highest stock price was 3,552.25 US dollars, and the lowest stock price was 2,186.21 US dollars.
“Our analysis of the classification and summation method shows that driven by Amazon Web Services (AWS) and advertising business, the next three years (Amazon stock price) will rise by about 70%. This means that by 2024, Amazon’s market value will be close to 3 trillion US dollars, and this does not include the potentially significant contribution that the multi-billion dollar opportunities in healthcare, home security, smart home devices, and entertainment may bring. In addition, the company is engaged in apparel, B2B (business-to-business) There is also room for further expansion in areas such as enterprise) and SaaS (software as a service),” Thiel said.
Teal said that his analysis based on the classification and summation method proved that Amazon’s stock price should reach $5,700. But he quickly pointed out that although the stock still has more room to rise, his target price for Amazon stock is still $4,000, with a “buy” rating Spark Global Limited.
“Our classification and summation analysis is purely illustrative and does not reflect our official price target. We believe that a longer-term evaluation of Amazon (based on expectations for 2024) will help in the face of the epidemic. Provide perspective when short-term disturbances/volatility. We have also seen that Amazon’s discounts relative to the sum of the parts have narrowed over time, which makes it a good indicator of long-term valuation. Please note that we will not Attributing any value to the Amazon health care plan, which will spend $350 billion in the United States, and may help increase the participation/frequency of existing users, while also helping to attract more Prime members. “He said.
Three factors may be conducive to Amazon’s stock price rebound this year
To be sure, Amazon’s stock price this year is still far away from $5,700. So far this year, Amazon’s stock price has risen by 5%, while the index has risen 10% over the same period, and the technology-based risen 8%. –Facebook concern FAANG in the top five technology stocks (NASDAQ: FB), Amazon, (NASDAQ: AAPL), (NASDAQ: NFLX), and parent company Alphabet (NASDAQ: GOOG, GOOGL) – Amazon The performance of Apple is the third-worst. In contrast, Apple’s stock price rose slightly over the same period, and Netflix rose 2%.
Amazon’s stock price trend is tepid, which reflects analysts’ concerns that the company may slow its growth rate in 2021. Prior to the outbreak of the new crown virus in 2020, Amazon’s business surged. But before Amazon released the first quarter of fiscal 2021 earnings, Wall Street analysts such as Teal have been defending the company. The collective argument of these analysts is: Amazon’s business prospects are still pretty good.
Robert Drbull, an analyst at Wall Street investment bank Guggenheim, said: “Although Amazon will face difficult revenue comparisons in the next few quarters, we believe that the stock price for the full year of 2021 will There will be a favorable background: (1) the revenue growth rate may remain strong (according to our estimation, the growth rate will be in the range of 20%); (2) the development trend of Amazon web services and cloud computing will remain strong; (3) ) With the further expansion of high-margin business units and Amazon’s massive investment in 2020 (including expenditures related to the new crown virus epidemic and the expansion of compliance centers), the increase in profitability will become a reality.”
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