Goldman Sachs Just Raised its 12-Month Price Target on Amazon

Amazon had some great news from Goldman Sachs this week.

The firm has raised its 12-months price target on the e-commerce giant from $1,825 a share to $2,000 a share.

The boost came after Amazon reported better than expected first quarter earnings results on Thursday. The retailer reported earnings of $3.27 a share on revenue of $51 billion. Analysts had been expecting earnings of $1.27 share and revenue of $49.96 billion.

Analysts at Goldman Sachs wrote in a note, “We are in the sweet spot between Amazon investment cycles where new fulfillment/data centers are driving accelerating revenue growth while incremental capacity utilization is driving margin expansion. Higher level, we still remain in the early stages of the shift of compute to the cloud and the transition of traditional retail online and, in our opinion, the market is underestimating the long-term financial benefit of both to Amazon.”

Amazon also revealed that it now has over 100 million paying Prime subscribers and that it would be increasing its Prime membership from $99 to $119 a year.

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