Amazon's Stock May Rise 11% as Earnings Quadruple
Michael Kramer | August 13, 2018
Amazon.com Inc.’s stock price has taken off as if it were one of Jeff Bezos’ Blue Origin rockets, rising more than three-fold over the past three years. As if analysts weren't already bullish enough, now they are looking for shares to rise even higher, by as much as 11%, from its current price around $1,910. Should shares rise as forecast, it would add another $102 billion to Amazon's market capitalization, taking it over $1 trillion, joining Apple Inc. Earnings estimates are also taking off, with analysts upping their earnings outlooks through the year 2020. The optimism follows blowout second-quarter results that saw Amazon's earnings beat analyst estimates by nearly double. Even more impressive, the profits of $5.07 per share in the second quarter were nearly 11% higher than its earnings of $4.55 for all of 2017.