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Amazon.com shares soar to record high after Canaccord boosts price target to US$2K

Canaccord's Michael Graham and Austin Moldow laud retailer as best of the so-called FANG stocks
Amazon box
The e-retailer recently announced stunning first-quarter results

Shares of Amazon.com (NASDAQ:AMZN) whizzed higher to set a record today after Canaccord Genuity bumped up its price target on the e-commerce behemoth to US$2,000 from US$1,800.

In a research note digested by CNBC.com, Canaccord’s Michael Graham and Austin Moldow lauded Amazon as “having the most robust and durable growth outlook” among the so-called FANG stocks, which consist of Facebook, Amazon, Netflix and Alphabet, Google’s parent company.

“Amazon’s rapidly growing scale of investment is strengthening long-term competitive barriers, and this includes a robust outlook for Prime subscription growth,” Graham and Moldow wrote.

In afternoon trade, Amazon shares climbed 2.3% to US$1,795.30, which is more than 70% higher than where they stood a year ago when they traded at roughly US$1,006.

Read: Amazon throws down the gauntlet by buying online pharmacy PillPack

Graham and Moldow pushed up their price target on Amazon today as they argue that the retailer’s revenue will be more robust than anticipated.

Amazon has been on a tear recently, announcing just last month that it is acquiring the online pharmacy service PillPack, a move that is set to radically disrupt the drugstore market.

Last April, the e-retailer also announced stunning first-quarter results, with its net income more than doubling to US$1.9bn, or US$3.27 per share and trouncing analysts' forecasts for earnings of US$1.27 per share.

“We think our revenue estimate of 38% could end up being conservative. This would be a 4.5 point sequential deceleration after five quarters of acceleration,” Graham and Moldow wrote.

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