Thanks to a surging stock market and the ever-onwards march of inflation, analysts are predicting that 2018 might be the year that a company finally cracks the $1 trillion ceiling. Apple, being the US’s most valuable company an all, is the obvious contender, but a new analyst note suggests that Amazon’s acquisition of Whole Foods and ongoing focus on
Amazon’s market cap currently sits at $737.8 billion, with a share price of $1,521 at the time of writing. That means it’s got a lot further to go than Apple, which sits at a little over $900 billion right now. But GBH Insights analyst Dan Ives thinks that Amazon can do it, as he’s raised the target price for Jeff Bezos’s retail behemoth to $1,850, and he sees more growth in the near future.
“The Prime membership moat that [CEO Jeff] Bezos & Co. have built is gaining further steam in the field, and the Amazon ‘flywheel effect’ is further playing out globally among consumers,” Ives said in a note seen by CNBC. “The Bezos strategic path, both on the consumer and enterprise fronts, [is] still in the middle innings of playing out and Amazon remains a ‘green light’ name to own at these levels.”
After acquiring Whole Foods last year, Amazon hasn’t lost any time incentivizing its vast
Apple, on the other hand, is in a rockier short-term position. While the iPhone X launch was a success, it hasn’t yet triggered the kind of “super-cycle” that Apple’s investors were hoping for, and the share price took a big dive last month, before a recent rebound.