Amazon.com Inc (AMZN)

[DiscoverGold]

Why Amazon will triple to $5,000 a share, according to the this hedge fund manager
By: MarketWatch | April 5, 2019

Critical information for the U.S. trading day

Could the S&P 500 be ready for its best winning streak in more than a year?

The index is one session away from an 8-streak run, the longest since Oct. 2017. Positive buzz on a U.S. trade deal (see below) appears to be laying the ground for an upbeat end to the week, and better-than-expected jobs data that just rolled out may also lend a hand.

Tech stocks have had no such luck, partly thanks to Tesla gloom, but Nasdaq enthusiasts can’t complain too much with the index up 2% so far this year, well ahead of the S&P and Dow.

There’s lots more tech enthusiasm in our call of the day, from Doug Kass, president of Seabreeze Partners Management, who predicts in his latest email to clients that Amazon AMZN, +0.98% shares will could hit $3,000 by 2021, and surpass $5,000 by 2025 as it becomes the first $2.5 trillion company.

Kass’s predictions mark gains of 65% and 175%, respectively, from Thursday’s close of $1,818.

Now, founder Jeff Bezos and his soon-to-be ex-wife MacKenzie are already rolling in dough but if Kass’s prediction comes true their fortunes will triple. MacKenzie’s stake is worth about $35 billion at current prices, and her ex has a stake worth $108 billion. If Amazon shares make it to $5,000, her piece of the pie will be worth a cool $96.2 billion and Bezos’s — $300 billion. Tough life.

“In the annals of U.S. corporate history there is no company that has as large and lengthy runway of opportunity as Amazon.com,” says Kass.

The basis for that lofty share gain is his expectation that Amazon’s earnings per share will beat forecasts by 10% or more for 2019, 2020 and 2021, the last of which he says will mark the biggest annual gain relative to expectations.

He’s also a big bull here because he thinks Wall Street hasn’t really “embraced and exploited” the company like its peers. Amazon has just 57% institutional ownership as a percentage of shares outstanding, versus 75% for Facebook, 77% for Netflix and 81% for Google-parent Alphabet. Oh and Amazon’s cloud service is “icing on the cake,” he adds.

Read Full Story »»»

• DiscoverGold