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.