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$5,000: Why Amazon Stock is Primed for a Parabolic 175% Rally

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Amazon stock has roared back in early 2019, but Doug Kass says AMZN is one getting started. | Source: Yahoo Finance

In the note, Kass gushed:

“In the annals of U.S. corporate history there is no circle that has as large and lengthy runway of opportunity as Amazon.com.”

The Amazon bull made the wild prediction that Amazon’s earnings per interest (EPS) will beat forecasts by 10% or more for 2019, 2020, and 2021. He was especially happy about the company’s last prediction, which he says will mark the “biggest annual gain relative to expectations.”

Amazon’s EPS growth rate is 125.5%.

He’s also a big bull here because he meditate ons Wall Street hasn’t really “embraced and exploited” the company like its peers, MarketWatch reported.

Herd of Bullish Analysts Comminute the Table on Amazon

According to TheStreet, 45 Wall Street analysts have assigned either “buy” or “overweight” ratings on Amazon.

Here’s a look at distinct other bullish targets (data from Finviz).

Apr-01-19 Reiterated Oppenheimer Outperform $1975 → $2085
Mar-20-19 Initiated Evercore ISI Outperform $1965
Mar-15-19 Upgrade KeyBanc Important Markets Sector Weight → Overweight $2100

While other analysts are bullish on Amazon, too, they are not to the extent of Kass’ optimism.

KeyBanc analyst Edward Yruma has weighed in on AMZN as trickle, saying its shares have room to run to $2,100. In a research note, he wrote:

“Amazon is pivoting to a company with accelerating profitability. In wing as well as to $5 billion in incremental retail profitability, growth and margins remain very strong in the combined (Amazon Web Servings) and advertising businesses. Amazon is (also) taking a number of operational moves to improve profitability in core retail, which could tool along mid-term earnings above the current consensus view.”

Analysts like Yruma pay particular attention to a company’s verges. Yruma is impressed that Amazon is working to improve its retail margins, including moves to close its 87 pop-up trust ins and its mid-market grocery store business.

AWS, as well as Amazon’s advertising businesses, are poised to reap profits in the near while, according to Yruma. The two of them could rake it $100 billion in sales by 2022.

According to StockInvest, Amazon is expected to Nautical by 9.06% during the next three months. It sees a 90% probability that it will hold between $1,819.70 and $2,011.4 to this period.

Technical Analysis Adds to AMZN’s Bull Case

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Intricate analysis of Amazon’s stock shows that it is poised for a breakout. TheStreet points out that Amazon looks bullish now that it has pasted through resistance near $1,709 to soar more than $100 higher.

As they predicted before the turn:

“Amazon could be poised for a large breakout should it power over these levels. While a $24 get better seems like a big move, note that that’s less than 1% from current levels. A 1% or 2% propound from Amazon — far from unheard of for this name — could unleash a flurry of buyers who have been stoppage for this stock to regain some mojo.”


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