The American e-commerce juggernaut made a significant move from the previous week after it reached the $1000.00 mark. With approximately $120 billion added to its market value and the 33 percent increase in its shares since January, the attention of the market players on the stock was inevitable. After the remarkable momentum, will the bullish move of Amazon (NASDAQ:AMZN) linger?
Amazon Stock Performance
Amazon stock traded comfortably around 996.00 and 999.00 levels with a market capitalization of 475.05 billion and a price earnings ratio of 186.61. During the after-hours, the stock advanced 0.05 percent to $996.40 while in the pre-market it ticked 0.30 percent higher to $998.98.
In the week ended in June 2, the stock traded mostly at 995.00 levels before hitting the 1000.00 mark. Amazon has been on a bullish momentum, as it moved away from this quarter’s lowest level at 884.00. The upward race of the stack commenced in the midst of earnings season.
As expected the upbeat earnings report provided a significant support on the stock, pushing it from 912.00 levels to 931.00. Amazon spurred investors’ interest after reporting a 23 percent increase in the net sales, which translated into $35.7 billion. Net income stood at $724 million to $1.48 per diluted share.
For the second quarter, Amazon was expecting net sales to turn between $32.5 billion and $37.75 billion, while its operating income could be around $425 million and $1.075 billion. The forecast of Amazon is still subject to change as the business acquisitions, investments, restructurings, or legal settlements are not yet concluded.
The recent surge of the market cap also contributed around 17 percent of the market cap of the S&P 500 consumer discretionary sector, another boosting factor for the stock.
Amazon Strategic Plans
Amazon founder and CEO Jeff Bezos noted in his statement during the latest earnings call the positive response of the Indian market over its primary offerings. The e-commerce company has expanded completely its dominance in India after Kleiner Perkins Caufield Byers revealed that the company’s rate growth and investments soared with more than 3 years of operation. Amazon has pointed out that its aggressive marketing and advertising of its products work in the Indian online retail market.
Meanwhile, Amazon has also jumped off in building physical stores with its seventh brick and mortar in New York City. The Company once concluded that “"offline retail is a big space with room for lots of winners. Included in the perks of a physical store would be product promotions of its digital content, providing wide choices of new books for those who prefer offline browsing, and a practical showroom for its gadgets. In this context, Amazon will likely have the edge against its competitors as it showcases its offerings in a tangible location. Amazon Bookstore first opened in Seattle, Washington in 2015. Currently, there are other stores operating in California, Oregon, and Illinois with two more in Dedham and Lynnfield Massachusetts.
In light of the stock performance and the strategic plans of Amazon, it will be reasonable that it will sustain its current momentum. Should the stock hit the $1000.00 mark again, there could be a higher possibility of hitting $1100.00 in the coming sessions.