Amazon.com, Inc. (AMZN) Gets A $425 Price Target

Amazon Logo
Amazon.com, Inc. (NASDAQ:AMZN) has received a “Blodget-like” price target from several Internet analysts on Wall Street based on Amazon’s recent quarterly results.  The price target sent Amazon shares to a new record on Friday, which valued the company at about $166.4 billion.

Mark Mahaney (RBC Capital Markets) increased his price target on Amazon.com shares to $425 from $330 due to re-acceleration in revenue growth and gross profit margin expansion.

“$425 Price Target feels Blodget-like and carries risk, but the inflection point in Amazon’s fundamentals seems clear,” stated Mahaney in a note to investors.

What does Blodget-like mean?

Henry Blodget, the founder of Business Insider and former technology analyst, predicted that Amazon’s shares would hit a pre-stock-split price of $400 in October 1998 during the first dot-com boom.  The shares more than doubled and hit that target one month later.

Sanford C. Bernstein analyst Carlos Kirjner gave Amazon.com an increased price target at $420.

Amazon reported their third quarter results late on Thursday.  The gross profit margins jumped 2.4% to 27.7% for the period.  That was the highest gross margin since the 1990s.  Amazon.com reported a loss of $41 million with net sales of $17.09 billion.

Leave a Comment