Why Amazon stock is at the top of the market today

Thursday’s trading session was a fairly sleepy one for many popular stocks. One exception was powerful retail. Amazon (Amazon 2.19%). The company’s stock price rose more than 2% on the day, which is a lot better than its essentially flat trajectory. S&P 500 jisoo. This can happen when a stock reaches a major milestone.

Amazon is now a $2 trillion giant.

For Amazon, that milestone would be a market cap of more than $2 billion. The company’s stock price surpassed that level on Wednesday, and given the difficulty of the feat, investors are encouraged to continue pushing the price higher.

Also, late Wednesdays are always influential. Bank of America We raised our price target on Amazon and reiterated our Buy recommendation. I now think the stock price has risen to $220, up from my previous estimate of $210. The bank said in its latest research note on the company that Amazon still has significant room to improve efficiency.

Analysis has already proven this, with many items now available for same-day or next-day delivery to customers. Bank of America said Amazon has six potential efficiency drivers, including new consolidation centers and expanded robotics integration.

Grow or go

While the analysis is cautious, it also notes that Amazon’s vaunted Amazon Web Services (AWS) could suffer (after all, Amazon operates in a space that faces fierce competition from major technology companies). ). Advertising revenue could also plummet.

But many investors are focusing on the positive side these days, as evidenced by the huge market cap figures. But be careful, because many expect these stocks to continue to outperform.