Amazon.com Inc. rallied on Monday, with the stock extending a recent advance deeper into record territory and topping $3,000 for the first time.
Shares rose as much as 4.8% to touch $3,030.30, and were on track for their fourth straight daily gain. The stock is up more than 12% over the four-day stretch and has climbed about 80% off a March low, resulting in a market capitalization of $1.5 trillion.
Amazon has seen accelerating demand for its e-commerce and cloud-computing services during the pandemic, which has closed brick-and-mortar rivals and led more people work remotely. Many analysts on Wall Street expect these trends will outlast the pandemic, solidifying the company’s market share and fueling the recent advance.
Despite the growing optimism, Amazon’s rally has left most Wall Street analysts in the dust. Fewer than a quarter of the 50 or so analysts tracked by Bloomberg have a target above $3,000, and the average target is about $2,810. While that is up from the $2,179 average at the end of 2019, it still implies downside of about 7% from current levels.
According to an analysis of Bloomberg data, the degree to which the share price exceeds the average target is at a multi-year high.
Amazon remains a consensus favorite on Wall Street. Only one firm tracked by Bloomberg recommends selling the stock, compared with the 52 that advocate buying it. Four firms have the equivalent of a hold rating.
Amazon is expected to report its second-quarter results later this month.