Amazon's Market Cap Could Reach $1.4 Trillion, Goldman Sachs Analyst Says

Michael LaVere
  • Goldman Sachs analyst Heath Terry predicts Amazon stock (AMZN) reaching $1.4 trillion.
  • Terry expects next week's quarterly earnings reports to be above market consensus. 

Goldman Sachs analyst Heath Terry says Amazon's valuation could reach $1.4 trillion to become the most valued company on Earth. 

According to a report by Barron’s, Terry published a research note on Thursday predicting a bullish outlook for Amazon stock. AMZN share prices are up 30% year to date, with the company’s market capitalization above $1.2 trillion and nearing an all-time high. 

In the note, Terry expects Amazon to be “well above consensus” in the March quarter for both revenue and profits are set to be released next week. Terry also predicted Amazon’s Q2 earnings report would likewise be above consensus. 

Wall Street consensus calls for $72.9 billion in revenue and profits for Amazon in Q1, with the June quarter pegged at $76.6 billion. The Goldman Sachs analyst wrote that he sees the March and June quarter posting $74.1 billion and $82.8 billion in revenue and profits, respectively. 

Terry wrote that growing demand for Amazon’s retail, cloud services and digital advertising will “steepen the curve of its long term growth rate, drive incremental profitability, and further deepen the competitive moat around all of its businesses.”

Amazon Stock price chartAMZN price YTD | Source: Google

Despite rallying more than 30% since the start fo the year, Terry wrote the market continues to “underestimate” the long term value of the “Amazon platform.” He lifted his price prediction from $2600 to $2900, which would put AMZN’s market cap above $1.4 trillion. 

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