|At a $2,500 stock price, Amazon would have a market valuation of about $1.2 trillion.
"We have increasing confidence that Amazon's rapidly growing, increasingly large, high margin revenue streams
(advertising, AWS, subscriptions) will drive higher profitability and continued upward estimate revisions," analyst Brian
Nowak said in a note to clients Wednesday. AWS is Amazon Web Services, the retailer's cloud computing division.
Nowak noted Amazon outperformed the top end of its operating profit guidance by an average of 60 percent over the past
three quarterly reports. He predicts the company's high profit margin businesses such as cloud computing, subscriptions and
advertising will generate nearly $45 billion in profit by 2020 from an estimated $25 billion this year.
Amazon shares are up 1.1 percent in Wednesday's premarket session. Its stock is up 65 percent so far this year through
Tuesday vs. the S&P 500's 8 percent gain.