In an investor note on Wednesday, rating firm Morgan Stanley predicted the company it expects to hit the 13-digit market cap after Apple (AAPL). No surprises here – it’s Amazon (AMZN). Reiterating its overweight rating, Morgan Stanley raised the price target on the stock to $2,500 from $1,850, which would value the e-commerce giant at over $1.2 trillion.
With the latest rating announcement, Morgan Stanley has become Amazon’s biggest bull.
According to analyst Brian Nowak, Amazon’s lucrative cloud service and rapid growth in advertising are expected to drive the company’s top-line further. He estimates profits from these two to hit about $25 billion this year and as much as $45 billion in the next two years.
Amazon shares were up 1.5% to 1,963.62 at 10:30 AM ET on Wednesday. The stock has rallied 65% so far this year, while the S&P 500 index is up just 8%.
In a separate note, the rating firm also raised the price target of Google parent Alphabet (GOOGL) to $1,515.
On August 2 this year at around 12 PM, Apple became the first trillion dollar US company, riding on a post-earnings rally, putting an end to months of speculations.
PetroChina, China’s second largest oil producer, is the first public company to breach the trillion dollar figure. The company touched the mark in November 2007 on Shanghai Stock Exchange, and in the following four months, tumbled to half its value.