One Analyst Thinks Amazon Could Be Worth $5,000 a Share

E-commerce giant Amazon has seen its shares explode this year and one analyst thinks the stock could be on its way to $5,000.

Shares have been up 41% YTD up until Tuesday’s close this week.

The stock has hit a market cap of $1.3 trillion as coronavirus lockdowns have pushed more consumers to ordering from Amazon.com.

According to Needham analyst Laura Martin, there will be more gains to come and says the stock could be worth as much as $5,000 a share, a level at which the stock would be worth about $2.5 trillion.

The analyst says you can justify a $5,000 stock price based on Amazon’s “track record of TAM-expanding [total addressable market] decisions that elongate its growth runway, drive higher profitability and lower shareholder risk via revenue-stream diversification.”

In other news, CEO Jeff Bezos recently sent a memo to employees urging them to cancel all meetings on Juneteenth this Friday, a day that commemorates the end of slavery in the U.S.

Amazon will offer a “range of online learning opportunities” for employees throughout the day, Bezos said. He added that employees should “take some time to reflect, learn and support each other.”
The full memo from Bezos reads:

Over the past few weeks, the Steam and I have spent a lot of time listening to customers and employees and thinking about how recent events in our country have laid bare the systemic racism and injustices that oppress Black individuals and communities.

This Friday, June 19, is Juneteenth, the oldest-known celebration commemorating the end of slavery in the U.S. I’m cancelling all of my meetings on Friday, and I encourage all of you to do the same if you can. We’re providing a range of online learning opportunities for employees throughout the day.

Please take some time to reflect, learn, and support each other. Slavery ended a long time ago, but racism didn’t.

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.