Shares of Amazon.com Inc. (AMZN) powered up 6.2% in afternoon trading, to add $91.3 billion to the ecommerce and cloud giant’s market capitalization.
Amazon’s market cap increased to $1.57 trillion.
The rally comes after the stock declined every day last week, marking the first weekly decline for the stock in eleven weeks, and just the second weekly loss in 18 weeks.
Analysts raised their price target to $3,350 from $2,525, will maintaining the buy rating he’s had on the stock for at least the past three years. “As the pandemic has accelerated the shift towards online shopping and towards cloud computing, they believe Amazon is the single best beneficiary from these secular trends over the next several years.”
While bearish investors have argued that valuations are stretched, and he wouldn’t be surprised to see investors take profits ahead of earnings, which are scheduled to be released July 30, “they believe it is a risky proposition to bet against Amazon.”
The stock has soared 70.2% year to date, while the SPDR consumer Discretionary select Sector ETF (xly) has gained 8.0% and also the S&P 500 (spx) has edged up 0.4%.