Amazon's stock price has soared 43.7% over the last year to more than $900, and several Wall Street analysts think it could go to $1,000.
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CREDIT SUISSE: Here's why Amazon's stock is going to soar (AMZN)
Credit Suisse equity research analyst Stephen Ju, reiterating his "Outperform" rating on Amazon and raised his price target from $900 to $1,050.
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Credit Suisse equity research analyst Stephen Ju is the latest to call for a big move in Amazon's share price. In a note circulated to clients on Monday, Ju reiterated his "Outperform" rating on Amazon and raised his price target to $1,050 from $900.
Amazon has been investing heavily in fulfillment and data centers, and Ju thinks some of those investments will start to pay off this quarter, improving margins for the retail behemoth. Those investments will also help balance out what profit Amazon loses by offering so much free shipping to customers. Credit Suisse notes Amazon's "push to invest should serve as positive demand indicators across its consumer and enterprise-facing businesses."
Amazon Web Services is becoming more and more important to Amazon's growth. Ju says that price cuts at AWS, which have stemmed growth, will begin to slow down and reverse, helping improve the unit's profitability. Additionally, Amazon is investing heavily in cloud technology, and that should also improve AWS margins.
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Credit Suisse's long-term thesis has three points:
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