The pandemic darling Amazon (NASDAQ: AMZN) has been experiencing unprecedented demand despite easing social distancing policies. This is evident from the latest survey from Bank of America that indicates 60% of people search Amazon first when they are shopping online.
Google is standing at the second spot with a 23% score while eBay is the first choice for only 3% of people.
In addition to the latest survey, Benchmark analyst Daniel Kurnos says the postponement of the Prime Day Event from its schedule would add to sales growth. The analyst also suggests investors capitalize on the recent stock price selloff.
Amazon stock price trades around $3,200 level at present, down from its 52-weeks high of $3,500 that it had hit last month. Shares of the largest e-commerce company jumped more than 80% in the past twelve months. The latest selloff is supported by broader market uncertainty and trader’s concerns over economic recovery.
Amazon stock price is likely to see strong support from financial numbers. Benchmark analyst Daniel Kurnos has provided a $3,800 price target, with a buy rating.
Meanwhile, Pivotal Research believes Amazon stock is trading at discount amid substantial revenue growth from ads revenue. The firm has provided a street high price target of $4500.
Analyst Michael Levine says Amazon is not fully involved in advertising businesses like Google (NASDAQ: GOOG) and Facebook (NASDAQ: FB), but the company has been seeing sharp growth in ads revenues.
Its ads revenue grew 41% year over year to $4.2 billion in the latest quarter, accounting for 5% of total revenue. The reports are suggesting that its ads revenue could hit $13 billion by the end of this year.
The consensus revenue estimate for the third quarter stands around $93 billion, representing a high double-digit growth from the past year period. Its second-quarter revenue came in at $89 billion.