Amazon, Alphabet have a new number one fan on Wall Street
Morgan Stanley upped its price targets for the tech giants’ stocks by 35% and 14% respectively on Wednesday, to levels higher than any other of the analysts surveyed by Bloomberg
London: Morgan Stanley just became the biggest Amazon.com Inc. and Alphabet Inc. bull on Wall Street.
The bank upped its price targets for the tech giants’ stocks by 35% and 14% respectively on Wednesday, to levels higher than any other of the analysts surveyed by Bloomberg.
Amazon’s high-margin revenue from advertising, cloud and subscription services like Prime are growing at such a rapid pace that the Seattle-based firm’s profits should increase even further, analyst Brian Nowak wrote in a note to clients.
Meanwhile, Google parent Alphabet is still only in the early stages of monetizing the seven platforms it owns that have more than a billion users, according to New York-based Nowak. The launch of a ride-hailing service by Alphabet’s self-driving technology unit Waymo could also spur further share gains, he said.
Both companies had already garnered a slew of price target increases after surpassing expectations for second-quarter earnings last month, and not a single analyst tracked by Bloomberg recommends selling either stock.
Amazon’s stock price has doubled over the past 12 months, trailing only Netflix Inc. and Align Technology Inc., the maker of Invisalign orthodontics equipment, in terms of percentage gains for a Nasdaq 100 index member. Alphabet has rallied about 34 percent, a bit ahead of the benchmark. Bloomberg