Analysts see more gains as Amazon shares break $1,000
Amazon.com (NASDAQ:AMZN) on Tuesday became the second of the current S&P 500 components to hit the $1,000 price mark, beating Google parent Alphabet (NASDAQ:GOOGL) to the punch and underscoring a massive rally in large-cap technology-related stocks.
Shares of Amazon have risen 33 percent so far in 2017 alone, adding roughly $120 billion to its market value. Priceline was the first S&P 500 stock to hit $1,000, doing so in September 2013. Analysts on average expect Amazon to rise another 10 percent according to the median price target of $1,100.
“The $1,000 is a bit of a psychological barrier for any stock, but it is just another number and we’re still big believers in it.”
Among the other four largest U.S. companies by market cap, Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) share prices have also risen nearly 33 percent this year while Alphabet has gained 26 percent and Microsoft (NASDAQ:MSFT) has added 13 percent.
The combined market cap of the top five is near $3 trillion, or more than 13 percent of the S&P 500 index stocks’ capitalization.
Amazon, the only one of the top five not in the technology sector, accounts for 17 percent of the market cap of the S&P 500 consumer discretionary sector.
In terms of stock prices, Amazon’s high of $1,001.20 is second among the S&P 500 behind Priceline, which recently hit $1,850.50. Priceline’s near $92 billion market cap is, however, runs far below Amazon’s $476 billion.
Apple dominates that metric with a capitalization of more than $800 billion.
Amazon beat Alphabet, which recently hit $994.32, in a race to $1,000. The other S&P component above $900 per share is Intuitive Surgical (NASDAQ:ISRG), at $912.80.