Amazon Most 'Robust' FANG Stock: Canaccord

The FANG stocks--Facebook Inc. (FB), Inc. (AMZN), Netflix Inc. (NFLX) and Alphabet Inc.’s Google (GOOG)--have had a nice run in their stock prices this year but it is Amazon that is getting the most praise, at least from one Wall Street firm.

Canaccord Genuity raised its price target on the Seattle, Washington-based e-commerce giant to $2,000 from $1,800, implying shares can gain an additional 11%. The Wall Street firm is bracing for Amazon to weigh in with stronger than expected revenue for its June ending quarter which it reports on July 26. "We think our revenue estimate of 38 percent could end up being conservative. This would be a 4.5 point sequential deceleration after five quarters of acceleration," analysts Michael Graham and Austin Moldow wrote in a research note covered by CNBC. (See more: Amazon Is Now in Value Stock Territory: Bloomberg.)

Prime To Fuel Growth

In addition to its potential for delivering a revenue surprise, Canaccord pointed to Amazon's  “rapidly growing scale” of investments which will serve to strengthen its long-term competitive position against rivals. Those investments, noted the analysts, include Prime subscription growth. "We continue to see Amazon as having the most robust and durable growth outlook in the group" Canaccord said.

The call out of Canaccord comes as Amazon is gearing up to launch its Prime Day annual sales event on July 16. During the 36-hour long event, Amazon will offer over one million deals across product categories including TVs, smart home, kitchen, grocery, toys, fashion, furniture, appliances, back-to-school supplies and everyday essentials. The online retailer also plans to use the occasion to boost sales of its own products, offering the lowest prices to date on Echo, Fire TV, and Fire tablets, and introduce savings on products from Whole Foods, the organic food chain it acquired for $13.7 billion in 2017. Members can also save $100 on the Echo Show. The Echo Dot was the most popular item among Prime members during last year's Prime Day. While Prime Day is a way to boost e-commerce sales for Amazon, it's also a successful strategy to lure more customers to the Prime subscription service. For an annual fee customers get free two-day shipping, discounted pricing and other perks. At last year’s Prime event Amazon reported sales were up almost 60% from the year-earlier.  

Morgan Stanley In The Amazon Bull Camp

Canaccord isn’t the only Wall Street firm to come out with a bullish note on Amazon this week. (See more: Why Amazon’s Stock Can Rise 45%.) Morgan Stanley said that in a bull case scenario, revenue from Amazon's advertising, cloud computing and Prime could send the stock as high as $2,600 as it uses profits from those units to invest in new markets. Morgan Stanley has a $1,700 price target on Amazon.

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