Here’s why a $1000 in Amazon shares may turn into $1149

New York-based investment banking and research firm Oppenheimer has revised the price target for Amazon shares. The new target is 5.6% higher than the previous target of $1975.00. The reason for the revision seems to be the faster adoption of AWS services for use in AI (Artificial Intelligence).

The target price by Oppenheimer for Amazon (NASDAQ: AMZN) is $2085. Let us now calculate the impact on a $1000 investment if the target is realized.

Close price of Amazon as on Apr 01, 2019 = $1814.19

Gain for Amazon shareholders if target price is achieved = [($2085 – $1814.19)/$1814.19] x 100% = 14.93%

Gain on a $1000 investment = $1000 x Gain% = $1000 x 14.93% = $149.3

Therefore, a $1000 will grow into $1000 + $149.3 = $1149.3 if the price target of $2085 is achieved.

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Here’s why Oppenheimer raised Amazon share’s target by 5%

Recently Oppenheimer raised the target share price by $110 from the previous target of $1975 for Amazon shares. The reason cited was related to the benefits AWS coupled with AI services are expected to add to the company. This post discusses how Amazon and in turn shareholders may gain from the dual services.

How AI may help Amazon and the shareholders

Artificial intelligence is the future. Companies have to utilize AI at any cost to compete with peers who anyways would use AI in almost all business operations. But AI has drawbacks.

Machine Learning (ML) is expensive. Data is expensive and time-consuming to collect. Experts required to build statistically sound models are hard to recruit and retain. Hence, there is no doubt that AI suit of services by Amazon is going to generate huge interest. Especially for those clients who are accustomed to AWS set of services, AI at low price points is going to be an enormous value addition.

The value for the future is going to help Amazon build an unmatched enterprise delivering at scale two of the most sought after services today – Cloud and AI. Netcials views the share price upgrade and the reasoning by Oppenheimer positive news to Amazon AMZN shareholders on NASDAQ.

Know the stock that gained 42% in 1 day (on April 2)

Below is a list of NASDAQ top gainers on Tuesday. The best performer gained above 42% in a single day.

  • Number 5: Stealth BioTherapeutics Corp. (MITO) Gained 11.9%
  • Number 4: MediciNova, Inc. (MNOV) Gained 15.2%
  • Number 3: Zynerba Pharmaceuticals, Inc. (ZYNE) Gained 20%
  • Number 2: Sangamo Therapeutics, Inc. (SGMO) Gained 29%
  • Number 1: EDAP TMS S.A. (EDAP) Gained 42.1%

About EDAP TMS, the topmost gainer

The number one performer, EDAP TMS is a health care stock. EDAP is a three-decade-old global leader in therapeutic ultrasound technology. The company is known for its R&D and patents in the field.

If you are a frequent observer of top gainers, you would not be surprised to see yet another health care stock claiming the top gainer spot. Seems the next generation of multi-baggers is going to be dominated by pharma and health care stocks.

Your $1000 may grow to $1217 with this stock – based on Goldman Sachs’ call

Goldman Sachs has added Five Below stock to its ‘Conviction Buy’ list. The analyst has raised the price target by about 20%. Some reasons for bullish outlook are the impetus given to brand awareness and long term projects like “10 & Less”.

The target price by Goldman Sachs for Five Below (NASDAQ: FIVE) is $147. Let us now calculate the impact on a $1000 investment if the target is realized.

Close price of Five Below as on Apr 01, 2019 = $120.73

Gain for Five Below shareholders if target price is achieved = [($147 – $120.73)/$120.73] x 100% = 21.76%

Gain on a $1000 investment = $1000 x Gain% = $1000 x 21.76% = $217.6

Therefore, a $1000 will grow into $1000 + $217.6 = $1217.6 if the price target of $147 is achieved.

See Why & How AZN Stock Could Surge 16% After April 1

Cowen has upgraded the pharma stock AstraZeneca with an ‘Outperform’ rating. The previous rating was a ‘Market Perform’. The key reason for the upgrade seems to be the value addition from a new deal for a cancer drug.

The target price by Cowen for AstraZeneca (NYSE: AZN) is $48. Let us now calculate the impact on a $1000 investment if the target is realized.

Close price of AstraZeneca as on Apr 01, 2019 = $41.27

Gain for AstraZeneca shareholders if target price is achieved = [($48 – $41.27)/$41.27] x 100% = 16.31%

Gain on a $1000 investment = $1000 x Gain% = $1000 x 16.31% = $163.1

Therefore, a $1000 will grow into $1000 + $163.1 = $1163.1 if the price target of $48 is achieved.