Amazon Breaks New Ground

Shares of Amazon (NASDAQ:AMZN) are off and running today, breaking through the $200 plateau with gains of 4.95% at last price check. The company is now trading near 52 week and all time highs close to $206/share. The surge from Amazon today comes as Morgan Stanley (NYSE:MS) adds the web vendor to its “Best Ideas List” setting target prices of $225-245 per share. Stanley says of the eCommerce giant, “Amazon.com’s global market share opportunity remains under-estimated by the market. Amazon.com is growing 4 times/2.5 times the rate of eCommerce in the US/international markets, respectively. We expect category / geographic expansion and new product cycles to continue to drive meaningful share gains over the next 5-20 years.”

Stanley analysts elaborate on short-term projections, calling for a strong fourth quarter for the company, “We believe Amazon is well positioned to show especially strong sales growth outperformance in CQ4. Relative to total eCommerce sales (ex-travel), Amazon has experienced higher y/y growth in each of the past 5 years, with average outperformance of 26 percentage points in the last 4 years. We attribute the outperformance primarily to Amazon’s broadening merchandise selection, Amazon Prime shipping offering and low pricing strategy. Additionally, we believe margins may expand y/y due to the revenue growth and higher than average investment cycle over the past four quarters.”

Amazon’s stellar performance today puts it among a crop of tech company’s outpacing the market. Google (NASDAQ:GOOG) shares are up over 2.12% to $485, with eBay (NASDAQ:EBAY) also up 1.75%. Other big name tech gainers today are Apple (NASDAQ:AAPL) up 2%, and Microsoft (NASDAQ:MSFT) up 4.61%.

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