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.
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.