Amazon: Jefferies optimistic on stock
(CercleFinance.com) - Jefferies recommends investors buying Amazon shares, with a target price of 1850 dollars, optimistic about the company's advertising business.
The broker said it believes Amazon's revenues from its advertising could increase from about 4 billion dollars today to 22 billion dollars in 2022, reaching an 8% market share of US digital advertising by 2019.
The business also generates a higher margin, enabling re-investment in other areas, Jefferies said.
The broker hence raises its revenue estimates for the company, saying that everything is in place for Amazon to reach a market cap of 1 trillion dollars over time.
Jefferies believes Amazon can grow without encumbering rivals such as Facebook or Google, as all of them would benefit from more dollars moving online.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker said it believes Amazon's revenues from its advertising could increase from about 4 billion dollars today to 22 billion dollars in 2022, reaching an 8% market share of US digital advertising by 2019.
The business also generates a higher margin, enabling re-investment in other areas, Jefferies said.
The broker hence raises its revenue estimates for the company, saying that everything is in place for Amazon to reach a market cap of 1 trillion dollars over time.
Jefferies believes Amazon can grow without encumbering rivals such as Facebook or Google, as all of them would benefit from more dollars moving online.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.