According to foreign media reports, according to Morgan Stanley, Amazon may be in the coming year to reach 1 trillion US dollars market capitalization.
Morgan Stanley reiterated to give the stock 'overweight' rating, the best 12-month target price of 2,000 US dollars per share, converted to its market value of about 1 trillion US dollars.
Brian Nowak, an analyst at Morgan Stanley, wrote in an investor note on Sunday: "Amazon's high margin (revenue) shows that the stock is the most aggregated Ideally, the market value will reach 1 trillion U.S. dollars.
Nowak writes: 'We forecast Amazon's revenue for 2022 from 5 parts, such as 1P, 3P, AWS, subscriptions, and ads, using the categorized summation method, and then multiply them by the weighted parameters for each part, Shares will reach $ 2,000 or $ 1 trillion per share by the end of 2018. The weighted parameters for each component are based on the growth and profitability of the corresponding business.
Nowak shares his method of calculating valuations and his key predictions of every business in Amazon.
He valued Amazon's core retail business at $ 600bn and estimated that its e-commerce business will have annual sales growth of 13% and an operating margin of 5.5% by 2022. Novak also estimates that Amazon's third-party market The business will realize a 25% interest, tax depreciation and amortization profit within 5 years.
Nowak provided Amazon.com $ 270 billion in valuations and expects annual sales growth of 18% and EBITDA of 50% for the unit in 2022. He also offers a growing subscription and advertising Business 70 billion US dollars and 50 billion US dollars.
Although it outlines Amazon's positive and optimistic outlook for growth, he reiterated his target price of $ 1,250 to Amazon, which is still up 11% from the Friday closing price of the stock.
As of last Friday, Amazon stock has risen 50% this year, the same period the S & P 500 index rose 15%.