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Why Amazon Stock Jumped Monday

By Daniel Sparks – Jul 20, 2020 at 1:22PM

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Analysts are getting more bullish on the e-commerce specialist's shares.

What happened

Shares of Amazon (AMZN -3.31%) jumped on Monday, rising as much as 6.1%. As of 12:41 p.m. EDT today, the stock was up 5.6%.

The gain was fueled by several analysts' decisions to boost their 12-month price targets for the stock ahead of the company's second-quarter earnings report this month. 

A box sitting on a front porch.

Image source: Getty Images.

So what

MKM Partners analyst Rohit Kulkarni reiterated his buy rating for Amazon stock and increased his price target from $2,525 to $3,350. The analyst recommends investors add to the stock on any pullbacks. 

Jefferies analyst Brent Thill similarly kept a buy rating. But he set a price target of $3,800, up from a previous target of $3,100. He believes the company saw strong growth in Q2 and has continued to see robust top-line performance into July. 

And Goldman Sachs analyst Heath Terry raised his price target from $3,000 to $3,800, keeping a "conviction buy" rating on the e-commerce giant. The higher price target for the stock reflects his improved outlook for both Amazon’s online retail and cloud-computing segments.

Now what

Investors will get a better idea of whether these analysts' bullish outlook for Amazon's business is on par with reality when the company reports its second-quarter results. The e-commerce specialist is scheduled to release its latest quarterly report after market close on July 30.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Jefferies Financial Group Inc and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Stocks Mentioned

Amazon.com Stock Quote
Amazon.com
AMZN
$91.01 (-3.31%) $-3.12
Goldman Sachs Group Stock Quote
Goldman Sachs Group
GS
$371.54 (-2.38%) $-9.04
Jefferies Financial Group Stock Quote
Jefferies Financial Group
JEF
$36.09 (-4.35%) $-1.64

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

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