After a Goldman Sachs analyst hiked Amazon’s price target to $3,800 per share, the e-commerce company’s stock skyrocketed 7.93%. The analyst’s call ties it for the highest price target on Wall Street.
According to Goldman Sachs, Amazon is primed to benefit from “accelerating e-commerce growth” even during the COVID-19 pandemic.
Goldman noted that its updated revenue-growth estimates “may prove too low”—hinting that there could be even more upside to the stock’s performance.
Amazon’s market cap now sits at $1.59 trillion after adding nearly $117 billion on Monday and $561 billion just this year.
Elon Musk and Tesla also continued their remarkable run. The stock jumped 9.47% and added $26 billion to its market cap as investors prepare for the electric car company’s highly anticipated earnings report on Wednesday, which is the first full quarter that overlapped with the COVID-19 pandemic.
In his research note, Baird analyst Ben Kallo sounded cautious and suggested that investors take some profits. “Risk/Reward temporarily skewed negatively,” he wrote.
Kallo believes Tesla will produce a second-quarter profit, but if it fails to do so, it could be a highly negative catalyst for the stock. Registering a profit, though, would all but ensure Tesla’s inclusion in the all-important S&P 500, which would trigger index fund buying and likely further boost the stock price.
Tesla’s stock has risen 60% since June 29 and nearly 300% this year.
As for other notable tech stocks, Microsoft closed 4.3% higher, tacking on $66.82 billion to its market cap, Apple ended the day up 2.11% to add $35.53 billion, and Alphabet rose 3.1% to add $32.08 billion.
The massive gains helped push the tech-heavy Nasdaq Composite up 2.5%.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek and Arirang TV. Follow or contact him on LinkedIn.