Business Corpus: Amazon Stock Pops; Analyst Eyes $1.2 Trillion Market ValuationAmazon stock hit a record high Wednesday as Morgan Stanley analyst Brian Nowak raised his price target on the e-commerce giant, giving it an implied market valuation of $1.2 trillion. The post Amazon Stock Pops; Analyst Eyes $1.2 Trillion Market Valuation appeared first on Investor's Business Daily.

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Amazon.com (AMZN) stock hit a record high Wednesday as a Morgan Stanley analyst raised his price target on the e-commerce giant, pushing its implied market valuation well past $1 trillion.

Morgan Stanley's Brian Nowak raised his price target on Amazon to 2,500, from 1,850. That's a 26% premium from where the shares currently trade. He reiterated his rating on Amazon stock to overweight.

At 2,500, Amazon would be worth nearly $1.2 trillion, up from its current market cap of roughly $956 billion. Apple was the first company to break through the $1 trillion market-cap level, on Aug. 2.

Shares of Amazon jumped 3.4%, a gain of 65.28 a share, to close at 1,998.10 on the stock market today. Amazon stock is up nearly 71% this year.

"We have increasing confidence that Amazon's rapidly growing, increasingly large, high-margin revenue streams will drive higher profitability and continued upward estimate revisions," Nowak wrote in a note to clients. He specifically referenced Amazon Web Services, its growing advertising business, and its subscription business from Amazon Prime.

An IBD Leaderboard Stock

Amazon is on the exclusive IBD Leaderboard list of top-performing companies, with an IBD Composite Rating of 99, the highest possible.

Amazon received several price-target hikes following its second-quarter earnings report in which the company blew past profit views. Amazon reported earnings of $5.07 per share, double what analysts expected.

The company's strong profitability outplayed any concern that revenue missed estimates, as did its third-quarter outlook. Revenue rose 39% to $52.9 billion. That missed estimates for $53.4 billion.

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The post Amazon Stock Pops; Analyst Eyes $1.2 Trillion Market Valuation appeared first on Investor's Business Daily.