The impressive performances of Amazon (AMZN) and Netflix (NFLX) have prompted Wall Street analysts to set new pricing targets for corporate stocks.
The bullish trend of AMZN and NFLX
Amazon.com Inc (NASDAQ: AMZN) made an amazing run both during the lockdown and the subsequent economic reopening. AMZN led the technology sector, increasing its market capitalization by approximately $ 90 billion. The title of the e-commerce giant has recorded new highs in recent times, both thanks to the restarting of the economy on a global scale, and for the plan to expand its branches with the acquisition of Zoox, which has helped to encourage a brighter future for the company's actions
A look at Amazon's current performance will provide a good insight into the positive trend that sparked analysts' bullish projections. At the end of Thursday's trading session, AMZN was up + 3% by setting a stock quote at $ 3,182.63. Friday closed the session with a rise of + 2,7% to $ 3,200.00.
The performance of the past six months of the Amazon shares it is extraordinary, with a percentage increase of + 63,39%. Netflix Inc (NASDAQ: NFLX) also experienced an impressive upward trend with the possibility of closing over $ 523 on Friday. The Amazon and Netflix duo received new pricing targets from Wall Street analysts.
Future analyst predictions
Citigroup raised its price target on Amazon to a maximum of $ 3,550 per share from $ 2,700. The new price target implies an increase of over 11% since Thursday's close of $ 3,182.63. The analysis said that Amazon's share price will continue to rise as the e-commerce market continues to grow.
This projection seems more likely in the coming weeks as growing COVID-19 cases could increase customer dependence on the e-commerce giant in an attempt to keep social distance. If the economic situation seen during the lockdown were to repeat itself, Amazon (AMZN) could even exceed the expected figure.
Goldman Sachs analysts expressed their Netflix (NFLX) share climbing to $ 670 from $ 540. This new record is possible thanks to the growing production of films and the success of the sale of subscriptions. Although these projections may appear decidedly ambitious, the current position and innovative strategy of these technology companies provide a framework capable of achieving this.
The uniqueness of the United States stock market lies in the diversity of the products and services offered by the companies. Diversity in product offerings has generated diversity in investor demand. As a result, the pandemic has caused some companies to collapse as much as it has favored others. Although companies like Amazon (AMZN) and Netflix (NFLX) are experiencing bullish days, others are paying the price for the crisis with a drop in stock prices.
