Value of Amazon.com Inc raised more above than anyone else in the stock market during the coronavirus pandemic, as online orders spiked at a time when people are stuck in their home to help reduce spread of the virus.
Market capitalization of the online retailer and cloud computing heavyweight has increased nearly $100 billion since start of the year, out of which more than $5 billion has increased in founder and Chief Executive Jeff Bezos’ share.
The Wall Street rallied in recent weeks driven by optimism that economy in the United States would gradually be reopening, but that did not work for S&P 500 as it still 13% down from its position on February 19, the time when Wall Street got caught by coronavirus fears which also finished its 11 year position of being bullish.
An increase of 2% in price of Amazon’s stock on Wednesday bring the total rise of 9% to its value since mid February, all because of up-and-coming online-shopping orders by millions of people stuck at their homes, many of whom previously prefer in-person shopping at traditional stores.
Amazon remained exceptional in delivering the consumer products of daily use to people around the world, an irreplaceable capability of Amazon which strengthen our believes that it would bring more people to the platform, will encourage existing customers to shop more of the items from Amazon, will largely step up process of people shifting to e-commerce and will add to its trademark, wrote Brian White, a Monness Crespi analyst, in a this-week client note.
According to a Refinitiv data, 49 analysts have recommended “Buy” rating for Amazon’s share, and White was also among those, whereas two analysts went with a “Hold” rating while no one recommended the stock as “Sell”.
Since start of February, acknowledging the changes caused by the impact of coronavirus, analysts on average have increased their quarterly revenue estimates by more than $1 billion for Amazon.