Shares of Amazon.com Inc. AMZN,
rose 6.2% in afternoon trade, to add $ 91.3 billion to the cloud and e-commerce giant’s market capitalization, after MKM Partners analyst Rohit Kulkarni raised his price target by a 33% citing the company as a dual beneficiary of the COVID-19 pandemic. Amazon’s market capitalization increased to $ 1.57 billion. Recovery comes after the stock declined every day last week, marking the stock’s first weekly decline in 11 weeks, and only the second weekly loss in 18 weeks. Kulkarni raised his price target to $ 3,350 from $ 2,525, and will maintain the buy rating he has had on the stocks for at least the past three years. “As the pandemic has accelerated the shift to online shopping and cloud computing, we believe Amazon is the best beneficiary of these secular trends for years to come,” Kulkarni wrote in a note to customers. While bearish investors have argued that valuations have widened, and you wouldn’t be surprised to see investors take profit before profit, to be released on July 30, “we think it’s a risky proposition to bet on Amazon,” Kulkarni said the stock has shot up 70.2% to date, while the SPDR Consumer Discretionary Select Sector ETF XLY,
has gained 8.0% and the S&P 500 SPX,
It is up 0.4%.
.
