Amazon(NASDAQ: AMZN) stock began the trading week with a pleasant pop. On Monday, several factors combined to drive the massive online retailer's share price 1.4% higher, topping the more or less flat performance of the S&P 500 index on the day.
Price target boosts from analysts typically provide short-term lifts to stocks, and Amazon received one on Monday.
It came from UBS prognosticator Lloyd Walmsley, who added $5 to his fair value estimation for a new figure of $180 per share. His move was driven in part by Amazon's announcement last month that it will begin inserting commercials into content delivered through its Prime Video streaming service.
Walmsley, who maintained his buy recommendation on the stock, believes those ads could contribute substantially to Prime Video's revenue. They are also likely to boost the company's profit margins. He lifted his estimate for total 2024 Amazon ad revenue to $55.8 billion, from his previous estimate of $52.7 billion.
Walmsley's wasn't the only bullish take on Amazon stock from a pundit on Monday. Perennially influential Goldman Sachs also waxed positive on the tech company. The investment bank's portfolio strategist Cormac Conners published a new research note stating that several tech megacaps were worthy of investment following their recent share price swoons.
"The divergence between falling valuations and improving fundamentals represents an opportunity for investors: On a growth-adjusted basis, the mega caps trade at the largest discount to the median S&P 500 stock in over six years," Conners wrote.
Amazon was one of the seven mentioned, keeping company with Apple, Microsoft, Alphabet, Nvidia, Tesla, and Meta Platforms.
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