Analysts upgrades Amazon and Netflix Stocks to new highs

The good performance of Amazon and Netflix stocks in the past weeks has caused analysts on Wall Street to rate these companies’ stocks high and set new price rates for them as well.

Since the time of the lockdown, until the economy reopens, Amazon has been making huge waves in the market. With social distancing restrictions in place, many shoppers would rather purchase goods online than go to a physical retail store. Amazon has played the forerunner of the tech rally, causing its market capitalization to hit nearly $90 billion. As the economy reopens, the e-commerce giant has seen its stock gain more highs, and its plan of acquiring Zoox has become more sure, heading towards the embers. At Friday’s closing, Amazon stock closed at about 3% to $3,184.46.

Netflix Inc. (NASDAQ: NFLX) on the other hand has also performed well in the past months with a substantial upward trend, hitting nearly $523 by Friday’s closing. Analysts are also expectant that Netflix’s share price could skyrocket more than 30% in the coming year, according to Goldman Sachs. Due to the performance of both companies’ stocks, Wall Street analysts have assigned new price targets to both companies.

Goldman Sachs increased Netflix (NFLX) stock to $670 from $540. This increase is directly linked to the growing numbers of subscribers of the video-streaming service. While there is no telling how long this would last, the projections are still fair enough. The company’s innovative strategy and strong AI technology can help achieve this goal within the expected timeframe and framework.

Citigroup raised its price target on Amazon (AMZN) from $2,700 to a street high of $3,550 per share. The new high came from the turnout of Thursday and Friday’s closing prices at $3,182.63 and $3,184.46. The analyst believes that Amazon’s share price will continue to increase as the company continues to grow. The increasing cases of the novel coronavirus could also imply a boost for Amazon’s business as more people opt for purchasing goods via the e-commerce and cloud giant. In the event where the lockdown repeats itself, it will only mean more wins for Amazon. Deutsche Bank, in a recent note, identified Amazon as the “clear winner” of the coronavirus related disruptions. The bank also wrote that consumers were most likely going to continue shopping on Amazon at high rates even the lockdown is eased. So far, Amazon stock has gained 59% year-to-date. 

Wall Street analysts have also rated stocks of some other companies high. These companies include chipmaker Xilinx (XLNX), e-commerce giant eBay (EBAY), and Twitter (TWTR).

Between March and April, the US stock market saw its worst days in history, sliding into bear territory after 10 years of a bullish market. While companies’ stocks like Amazon and Netflix are seeing bullish days, some other companies are experiencing sharp downtrends into bear territory.