Shares of Amazon.com, Inc. (AMZN) spy poised to reach the magic $1,000 label. The Seattle-based company’s stock reached $999 in yesterday’s trading before closing the day at $993.4. This morning, the company’s stock touched a high of $997.41, and it is trading at $995.1 as of this writing.
Amazon’s rise in the stock markets has been nothing short of remarkable over the past decade. This is because the company, which is famed, renowned for its customer obsession, bucked conventional wisdom by consistently reporting losses for the first nine years of its existence. But investors were not dissuaded and nudged Amazon’s stock price higher. (See also: whether You Had Invested Right After Amazon’s IPO.)
Amazon made its debut in the stock markets with a starting price of $1.73 in May 1997. Its stock weathered the turbulence of the dotcom crash, and it breached the $100 label for the first time in October 2009. The journey to $500 per share was much shorter – the company achieved that feat in June 2015. Based on the stock’s recent trajectory, the climb to $1,000 seems to be even less arduous. For additional context, the e-commerce behemoth’s stock has shot up by 370 percent in the past five years. Amazon is now twice as colossal as rival Wal-Mart Stores, Inc. (WMT) in market capitalization. To be certain, Amazon’s meteoric rise in recent times is helped by the fact that the company refused to perform stock splits as its shares climbed higher. The final time that Amazon split its stock was in 1998. (See also: Jeff Bezos Nets nearly $1 Billion in Amazon Stock Sale.)
Investors are definitely betting that Amazon will paddle even higher – 41 out of a total of 47 analysts own a Buy or Strong Buy recommendation for the company. famed analyst firms, such as Goldman Sachs and Wedbush Securities, own already forecast a high of $1,250 for the e-commerce company. In an interview with CNBC, technical trader Andrew Keene said that Amazon’s stock has been bought every time it hits the 20-week moving average. According to Keene, the stock will head higher (toward $1,000 and beyond) even whether there is a pullback from investors. (See also: Amazon Will Be a Three Trillion Dollar Company.)