Ignoring bloodbath in stocks, this company marches ever higher
Amazon (AMZN) is so bullet-proof these days that even a bloodbath in stocks isn't enough to wound its stock price.
Shares in the e-commerce giant continued their climb into four figures Friday despite financial markets plummeting amid rising concerns about inflation. While the Dow was on track for one of its biggest-ever one-day declines, shortly before the close of trading Amazon's stock was up nearly 3 percent at roughly $1,430.
That pushed Amazon's market capitalization above $700 billion in intra-day trading for the first time. It's also setting the stage for an interesting duel with Apple (AAPL) for the hearts and minds of investors as the technology giants vie to become the first company valued by the market at $1 trillion.
Amazon is basking in a day-after glow of better-than-expected profits, as analysts cheered by a prime holiday season and the company's best year-end sales growth in eight years. The retailer's quarterly profit surged above $1 billion for the first time in its more than 20 years in business, as it signed up new Prime members and realized gains from its recent acquisition of Whole Foods.
"We think Amazon cleared almost all hurdles that could have proven problematic as growth exceeded expectations and seems to be the key focus among long-term investors," wrote UBS analyst Eric Sheridan in a note to clients.
Raymond James analysts Brian Alexander noted Amazon's accelerating advertising revenues, up a whopping 62 percent from a year ago, as well as the company's progress in signing up more members to its Prime program.
"It is clear that the company can turn on the profit stream whenever it wishes," Wedbush analysts noted. "Amazon continues to see rapid revenue growth overall, and we expect it to continue to grow its top line rapidly for many years to come."
As Amazon flourishes, founder and CEO Jeff Bezos finds himself atop an ever-expanding fortune. Already the wealthiest person on the planet, Bezos's net worth, recently estimated at $113.5 billion, piles higher along with Amazon's stock price.
Forbes magazine last month calculated, for instance, that a 2.5 percent rise in his company's stock padded his pockets with another $2.8 billion, all in one day.