Tuesday , July 27 2021

Analyst: Amazon stock hits $ 3,300 as poll results show more Prime members and purchases

An Amazon Prime Truck in downtown Seattle near Amazon HQ. (GeekWire Photo / Kurt Schlosser)

The COVID-19 pandemic has struck companies in various industries, but Amazon will emerge from the global crisis as a "structural winner" and will see its share price continue to rise.

This is the assumption by RBC Capital Markets, which raised its 12-month price target for Amazon stocks on Monday from its previous estimate of $ 2,700 to $ 3,300. Shares rose about 25% this year, hitting an all-time high of $ 2,511 on Monday.

RBC conducted its eighth annual US online shopping survey and found that the switch to online shopping has “accelerated” significantly due to COVID-19 and is helping companies like Amazon, Walmart, Etsy and eBay. RBC believes that the increase will lead to a permanent change in consumer behavior.

"Amazon-specific results clearly support the idea that Amazon is probably the best global online retail play-off," wrote RBC analysts in a research report on Sunday.

The survey found that customers shop on Amazon more frequently, while 67% of respondents said they were prime members, compared with 59% last year. Adding more Prime members is key as they are the most loyal Amazon users, according to RBC.

However, not everything is rosy on Amazon, as the survey found record satisfaction with the company, possibly due to delivery delays and the unavailability of certain items during the COVID-19 crisis.

Amazon has become a lifeline for customers seeking protection during the home pandemic, but maintaining costs during the crisis is costly. The company spends billions on COVID-related initiatives, including new security measures in its warehouses. where employees tested positive for the virus.

Amazon has grown to more than 935,000 employees worldwide. It is planned to offer permanent employment to 70% of the 175,000 agency workers hired by the company to cope with the increasing demand caused by the pandemic.

“Caring for customers and protecting employees while this crisis continues for months requires skill, humility, invention and money. If you are an Amazon shareholder, you may want to take a seat because we don't think small, ”said Jeff Bezos, Amazon CEO, in a detailed statement as part of the company's recent quarterly report.

About Corrie Donnelly

Corrie Donnelly is a computer engineer originally born in Germany. He was writing articles about technology and computer games for websites.

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