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.