Please ensure Javascript is enabled for purposes of website accessibility

Why Amazon Stock Jumped on Tuesday

By Daniel Sparks - Updated Apr 14, 2020 at 2:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst thinks shares of the e-commerce and cloud-computing giant are headed to $2,480.

What happened

Shares of Amazon.com (AMZN 1.42%) jumped again on Tuesday, hitting a new all-time high. The stock was up about 5.3% as of 1:50 p.m. EDT.

Shares of the e-commerce and cloud-computing giant were rising amid a sharp jump in the overall market. But optimistic analyst commentary about the growth stock might have helped, too.

Amazon employee with box in an Amazon fulfillment center

Image source: Amazon.com.

So what

Highlighting bullishness in the overall market on Tuesday, the S&P 500 was up more than 3% at the time of this writing. A significant portion of Amazon stock's gain, therefore, was likely because of this continued rebound in the overall market.

Meanwhile, Bank of America analyst Justin Post reiterated a 12-month $2,480 price target for the stock, noting that the company's announcement on Monday that it would hire an additional 75,000 employees (on top of the 100,000 workers it added in March) will likely drive enough incremental sales to offset the cost of these new employees. In addition, the analyst says there has been a "massive shift" toward online ordering as consumers are sheltering at home.

Now what

With earnings season underway, investors will get a timely update on Amazon's business soon to see for themselves how well the company is faring during this coronavirus pandemic. The company typically reports its first-quarter results toward the end of April.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$108.92 (1.42%) $1.52
Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$31.86 (-1.24%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.