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Sept. 22, 2020, 7:58 a.m. EDT

Amazon upgraded as analysts forecast the e-commerce giant’s staying power even after shoppers return to stores

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Tonya Garcia

Amazon.com Inc. shares rose 2% in Tuesday premarket trading after the e-commerce giant was upgraded to outperform from market perform at Bernstein. Analysts maintained their $3,400 price target.

Bernstein forecasts that Amazon /zigman2/quotes/210331248/composite AMZN +0.31% will still be the go-to choice for shoppers, even after the pandemic.

“[W]e undervalued the power of being the sole e-commerce demand aggregator,” Bernstein wrote in a note.

Read: Amazon launches Luxury Stores, an invitation-only shopping experience for high-end fashion and beauty

“Amazon is positioned to increase their dominant share position when the return to physical stores occurs. Amazon has also quietly made substantial inroads into grocery and ‘shopping’ verticals.”

Analysts led by Mark Shmulik also have first-hand experience with the benefits of one-day delivery, an offering that they first thought would not be much of a competitive advantage. Analysts say they ended up purchasing a TV and having it installed through services they found on Amazon that were cheaper and quicker than BestBuy.com /zigman2/quotes/205918291/composite BBY +0.05% .

“Amid COVID, Amazon has executed incredibly well, pivoting its operations and inventory to in-demand verticals – with flexibility and speed we didn’t expect,” analysts said.

And the company can make further gains in other “revenue pools” like advertising and cloud services.

Amazon stock has rallied more than 60% for the year to date. The Amplify Online Retail ETF /zigman2/quotes/206522380/composite IBUY -0.09% has gained 67.8%. And the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.47% is up 1.6% for the period.

US : U.S.: Nasdaq
$ 3,217.01
+9.80 +0.31%
Volume: 4.51M
Oct. 20, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$1606.46 billion
Rev. per Employee
$ 120.89
+0.06 +0.05%
Volume: 1.73M
Oct. 20, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$31.27 billion
Rev. per Employee
US : U.S.: NYSE Arca
$ 96.58
-0.09 -0.09%
Volume: 137,870
Oct. 20, 2020 4:00p
+16.20 +0.47%
Volume: 2.11B
Oct. 20, 2020 5:08p

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