Amazon Stock: Could Amazon.com, Inc. Be the Next $1,000 Stock?

Amazon StockAmazon Stock Could Hit $1,000 before the End of 2016

Apple Inc. (NASDAQ:AAPL) is suing a counterfeit “iPhone” cable and charger manufacturer, which uses Amazon.com, Inc. (NASDAQ:AMZN) to sell its wares. The fake Apple product-maker presented its wares as being from an original equipment manufacturer (OEM). In addition to the various operating risks for the buyers of these products, like potential malfunctions, damage, or even fire, the big question is: how will this affect Amazon stock?

The good news is that, even if Amazon.com’s reputation as a reliable reseller has been somewhat tarnished, Apple has not formally pursued any action against Amazon. Indeed, Amazon stock has continued to pursue its relentless bullish course, trading at near-record highs of $838.00. In the second quarter of 2016, Amazon stock amply beat expectations, posting adjusted earnings per share (EPS) of $1.78, trouncing expectations of $1.11.

As for AMZN stock, how long will it be before it crosses $1,000 per share? Amazon has only one rival in this tech sector marathon, none other than Alphabet Inc (NASDAQ:GOOG), aka Google. But Amazon may have the upper hand. Having set new record highs in almost linear succession since last February, Amazon stock carries a lot of momentum.

As we approach Amazon’s Q3 earnings report, expected at market close on October 27, Goldman Sachs Group (NYSE:GS) increased its price target from $920.00 to $1,050.00. The famous banking firm sees results exceeding expectations with growth across all divisions. And who can blame them? Not only could Amazon stock hit the $1,000.00 mark ahead of Google; it could reach this target before the end of 2016, one of its best years ever.

Amazon Stock Has Made Huge Gains in 2016

Amazon shares have gained more than 28% this year. By comparison, Google shares gained about 7.7%. Analysts expect Amazon stock to keep growing at an even faster pace in 2017. Google will actually contribute to that growth, because it just launched its own branded smartphones. This, along with a number of new potential blockbuster electronics items from camera drones to new gaming consoles, make it hard to see AMZN stock as going anywhere but higher, to $1,000 and beyond in 2017.

Amazon stock’s rise has defied the conventional wisdom of Wall Street.

Amazon.com plans to adopt dozens of plans. They are expensive and potentially risky, potentially discouraging investors, but that has not been the case. With online retailers expanding, and Amazon’s ambitions to reduce consumers’ reliance on retail establishments, even for such things as toilet paper, innovation is the only key to long-term success.

Look for Amazon Prime’s Performance in Q3 Results

In the short term, Amazon stock shareholders might be more keen to see what earnings benefits are coming from its “Amazon Prime” service. Amazon Prime offers free shipping and a wide selection of specially priced items. Amazon Prime Day, which fell on July 12 this year, has become almost as big a shopping occasion as Black Friday and Cyber Monday. The difference is that while Amazon.com and Amazon Prime get plenty of sales on both of those days, only Amazon gains on Amazon Prime day.

Amazon Prime also offers video streaming. It has popular movies and its own on-demand series, including popular shows such as Mozart in the Jungle and a soon-to-air car show, The Grand Tour, starring the popular hosts of the original BBC show Top Gear, who have built a global following.

Given the success of rival Netflix, Inc. (NASDAQ:NFLX) to gain new subscribers over the past quarter, prompting a 20%+ gain on Wall Street, all eyes will be on Amazon Prime.

AMZN stock shareholders welcomed the company’s latest iteration of cloud computing. Amazon has joined VMware, Inc. (NYSE:VMW) to offer cloud services through “Amazon Web Services.” It will give Microsoft Corporation (NASDAQ:MSFT) something to worry about, as its target might well be “Microsoft Azure.” The new cloud is a shift toward hybrid cloud, which allows companies to use two cloud centers, in this case those of Amazon and VMware.

The important thing for investors is that Amazon is entering a field in which it will challenge the leading hybrid cloud computing provider, Microsoft. It has a chance to win over some of that business, fueling another area of growth for the company that started out as an online book reseller. The company is challenging established players on many fronts and winning. That’s why Amazon stock has such bullish prospects.