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Amazon is ready to break a $ 1 trillion barrier after the Morgan Stanley upgrade



Do not be shocked by this call:

The Amazon.com Inc. (AMZN) share is expected to open at a record high on Wednesday and could become the second US company after Apple Inc. (AAPL) Trillion Dollar Rate Threshold after Morgan Stanley raised its price target for the online trading giant with rising margins and its dominating cloud computing business.

Both technology giants are represented in Jim Cramer's Action Alerts PLUS Club [19659002] Morgan Stanley's analyst Brian Nowak raised his price target on Wednesday by 35% to $ 2,500 a share, which equates to a market value of $ 1.2 trillion his "overweight" in a customer note with an upgrade to Google parent company Alphabet Inc. (GOOGL). Nowak said that the group's high growth and high margins ̵

1; such as web services, advertising and subscriptions – provide scope for investment and generate higher profits for investors in the short term.

"The (price target) adjustment reflects Amazon's improving business mix, long-term potential earning power as its prior three-part sum of parts price target calculation," said Nowak.

The Amazon share was 1.34% higher pre-market Tuesday, suggesting an opening price of $ 1,958.67 per share, bringing the year-to-date gain to just under 67% and valuing Seattle, Wash .-based group at $ 962 billion. Apple was the first company in the world to break $ 1 trillion on August 1, when it hit a record high of $ 207.39. Apple was rated 0.14% higher in pre-market trading at $ 220.00 each.

Morgan Stanley sur $ AMZN pic.twitter.com/iqCEsyAxtK

– Ezints (@ezints) August 29, 2018

Amazon published a forecast Second-quarter earnings were $ 5.07 per share at the end of July, more than double the consensus forecast of $ 2.48. Compared to the same period last year, the consensus was as low as $ 40 per share, with group sales of just under $ 53 billion. Amazon also said that it will see the net profit for the three months to September, the third quarter, between 1.4 and 2.4 billion dollars cloud computing business with high margins Amazon Web Services (AWS)

Sales AWS increased 49% year-on-year to $ 6.11 billion, which is in line with the first quarter growth rate and exceeds a consensus estimate of $ 5.98 billion. In addition to the performance of AWS, Amazon's EPS also benefited from the fact that the company's high-pressure operating income more than quadrupled to $ 1.84 billion in North America.

"We are very pleased with the results, and the order backlog we see, and the new contracts and new customers and the expansion of the existing customer business that we see," said CFO Brian Olsavsky told reporters on a conference call on revenue. "Again, business has accelerated in the last three quarters, and we see great signs in some areas.

"The operating margin itself will fluctuate from quarter to quarter, a very strong performance this quarter," he said. "Obviously, part of it was that the capital leases were flat year-on-year and the team's ability to really run the data centers to operate more efficiently. "


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