Amazon (NASDAQ:AMZN) shares rose nearly 4% Friday, after the e-commerce and cloud giant delivered another “earnings gem” as it handily beat Street estimates across the board. Specifically, total revenue of $51 billion handily beat the Street’s $49.8 billion estimate. EPS of $3.27 handily beat the Street’s $1.26 estimate with operating margins coming in ahead of Street expectations.
In reaction, Monness analyst Brian White reiterated a Buy rating on Amazon shares, while boosting the price target to $2,200 (from $2,000), which represents a potential upside of 40% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst 5-star analyst Brian White has a yearly average return of 15.7% and a 67% success rate. White has a 6.3% average return when recommending AMZN, and is ranked #81 out of 4778 analysts.
White wrote, “After more than a month of concerns regarding data privacy after the Cambridge Analytica issues with Facebook, combined with heightened tensions between the White House and Amazon, Amazon’s stock has been held back from realizing its true potential. However, we believe last night’s results will again focus investors on fundamental trends, re-energizing the stock.”
“The tone of the last night’s call mirrored the big upside delivered by Amazon with strength in AWS and consumer spending on the platform, combined with advertising contributing handsomely to profits. Once again, AWS delivered the highest revenue growth, increasing by 49% YoY to $5.44 billion and ahead of our estimate of $5.39 billion, followed by 46% growth in North America to $30.73 billion (vs. our $29.84 billion estimate) and international growth at 34% to $14.88 billion (vs. our estimate of $14.25 billion),” the analyst added.
Out of the 46 analysts polled in the past 12 months, 45 rate Amazon stock a Buy, while 1 rates the stock a Hold. With a return potential of 19%, the stock’s consensus target price stands at $1,807.47.