It’s been another booming year for Amazon.com, Inc. (NASDAQ:AMZN), which has more than doubled its value, year-to-date. Many attribute the company’s growth to the rise of Amazon Web Services, or AWS. Though it’s easy to make a profit on a stock that keeps soaring, TipRanks tells us which five analysts recommended the company at the most opportune times. All ratings are measured over a three-month horizon with no benchmark.
- Neil Doshi of Mizuho Securities; 45% profit
At the time of his rating on August 25, 2015, major Internet stocks were in a rut, with Doshi’s coverage universe having lost an average of 12% in value. The analyst explained, “If the global economy will start to slow, we believe that consumers and businesses would choose to utilize to best-in-class services first,” adding that Amazon, with a $645 price target, was his second-top pick (behind Facebook). Investors who followed Doshi’s Buy rating in the following three months following would have made a 45% return as the stock climbed from $466 up to $675.
- Victor Anthony of Axiom; 45% profit
Anthony’s rating on August 24, 2015, highlighted AWS, noting that the product was “still in the early days.” However, he recognized AWS’ potential in its “breadth and depth of product and operational track record,” which would “play a major role in locking in customers.” The analyst expected that in the long-term, AWS would “drive significant growth in FCF and high ROIC.” Over the three month period following Anthony’s bullish rating, Amazon stock climbed 45%.
- Mark Mahaney of RBC Capital; 43% profit
Though the analyst reduced his price target on January 27, 2015, from $420 to $410 to account for FX headwinds, Mahaney remained optimistic about the company. He explained, “We now believe that the company will face 15% Y/Y FX headwinds in the first three quarters of 2015.” As a result Mahaney also reduced his revenue estimates by 4 percent.
- Ken Sena of Evercore; 35% profit
When Sena upgraded the company from Hold to Buy on August 26, 2015, with a $585 price target, he commented, “We continue to appreciate Amazon’s scale and opportunity for margin expansion within two large and growing addressable markets: online retail and cloud.” He voiced his belief that the company would continue to increase its market share in ecommerce, mainly thanks to the Prime service. Investors who followed Sena’s Buy rating would have made a 35% return in the three months following the rating.
- Gene Munster of Piper Jaffray, 35% profit
Munster recommended Amazon on September 4 after it acquired Elemental Technology, a video technology service. Munster noted that the acquisition “plants Amazon firmly in the media creation and distribution landscape, which will likely be advantageous to Amazon’s media efforts.” Furthermore, the acquisition indicated that the company was “aggressively looking to move into the technology services space which can be cross sold with existing and new AWS customers.” Munster’s hunch proved to be true as investors who followed his buy rating for three months would have made a 35% return on the investment.