Amazon shares hit new record high amid price target increase

Amazon shares have hit a fresh record high Thursday in the wake of a price target hike from investment bank Canaccord Genuity.

Amazon shares hit new record high amid price target increase

Amazon shares have hit a new record high Thursday after analysts at investment bank Canaccord Genuity raised their price target for the tech giant.

A research note cites the strong fundamentals at Amazon and the fact that it will be tough for any competition to gain a significant slice of the consumer pie Jeff Bezos business has already secured.

By 1640 BST, Amazon shares were 1.51% higher at $1,781.43. The stock has been moving broadly higher in recent weeks.

Higher Amazon price target

Canaccord Genuity analysts Michael Graham and Austin Moldow raised their price target on the Amazon stock to $2,000 from $1,800. That means the investment bank becomes the latest firm to lift its 12-month stock price expectations of the global tech behemoth above the consensus of $1,800.

“Amazon's rapidly growing scale of investment is strengthening long-term competitive barriers, and this includes a robust outlook for Prime subscription growth,” Graham and Moldow wrote in a research note to clients.

"We think fundamentals remain as strong as ever as e-commerce business continues to grow nearly 30% ex-Whole Foods, and AWS [cloud business] remains the market leader, accelerating growth to almost 50% last quarter,” they said.

“We continue to see Amazon as having the most robust and durable growth outlook in the [FANG] group”, the note added.

Prime Day strikes

Separately, Spanish Amazon workers are set to strike during Prime Day, one of the business’s flagship events. The strikes over working conditions will begin in the Madrid warehouse, which is one of Amazon’s largest.

The timing has been set to coincide exactly with Prime Day – beginning at midday on July 16th and ending at the end of July 17th.

The Comisiones Obreras Union who has organised the action, said the strikes were regarding wage cuts, working conditions and rules around time off.

“Strikes aren’t good for anyone, not the company, the workers or the customers, but we need to keep putting pressure on local management,” union representative Douglas Harper told Reuters.

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