Bloomberg TV: Amazon shares could rise $1,000 to $4,400 by the end of the year 04.02.2021

Amazon shares could rise $1,000 to $4,400 by the end of the year – Bloomberg (bloombergtv.bg)

Amazon’s change in leadership is undeniably a strategic move. It’s one of the biggest companies in the world, working with insanely skilled market analysts, and always such shakeups at these corporate titans pay off in the long run. This was commented by Yordan Mitsikulev, professional trader and founder of Rodopa Capital, on the air of the program “In development” with presenter Veronika Denisova.

“Andy Jassi has been directly involved in the management of Amazon since its inception. It is no surprise that he is taking the helm of the company.”

“Jeff Bezos’s role as executive chairman is the cause of huge interest in the stock markets,” commented the professional trader, as he believed that the new post of the second richest man in the world would give him more time to develop side ideas and projects of Amazon.

“We should not forget that Amazon offers 165 services, of which the store is only one. The rest include building 5G networks, managing cloud systems, integrating artificial intelligence into the company’s own platforms, facial recognition, etc. This are the sectors of the future that China is currently focusing on as well. For this reason, and even more so because of the company’s request to work together with US federal institutions, its focus will no doubt shift in this direction.”

Yordan Micikulev recalled that Amazon has specialized in data management since the end of the dotcom bubble in the 1990s.

“Since then, they have been focusing on this part of the company, with cloud storage now serving more than 1 million businesses,” the source added.

“As the head of Amazon Web Services (AWS), Andy Jassy has made it so that the unit already forms a third of the business and more than half of the operating profit according to the latest results. It is this sector that is just starting to develop and that is where the biggest surprises are expected”.

According to the founder of Rodopa Capital, the record revenue for the fourth quarter of 2020 of about 125.5 billion dollars is mainly due to the fact that Amazon was able to organize its operations extremely well, responding effectively to the increased consumer demand within e-commerce.

“Another main reason is that with the digitization of our daily lives – many novice traders have chosen to start trading on stock exchanges as a means of income. Online trading of securities is far more accessible, which in turn has created additional liquidity for the company”.

Regarding the strengthening of regulatory control over technology giants, the guest pointed out that, on the one hand, Amazon can be considered a monopolist, but on the other hand, the competition in this sector in the US is not so developed.

“I don’t think the pressure from regulators will have a tangible impact on the company’s performance. Amazon has overcome far more serious problems in the past.”

According to the professional trader, Amazon’s stock price will reach $4,400 per share by the end of the year, a $1,000 increase from current levels.

“Even if there is a shock in the market and analysts expect a correction similar to the one in March, the investments in this company do not stop”.