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Amazon shares reached a record high after earnings

Shares of Amazon (AMZN) reached a record high during the day, after reporting the results of the first quarter and guidelines that blew past expectations.

Shares of the e-commerce giant jumped 2.4%, reaching 3,553.39 on Friday morning in New York. Shares lost steam in the afternoon trading and eventually ended lower by 0.1% to 3,467.42, or slightly to a record close.

The surge came after the company posted another quarter of the sales and profit bubble, easily exceeding expectations, as the pandemic-induced rise in online shopping and cloud demand showed no signs of slowing down.

“Amazon undoubtedly has a lot of momentum coming out of the pandemic. I think one thing we̵

7;ve heard from investors is that they’re worried about their ability to calculate comp,” Anthony Chukumba, managing director of Loop Capital, told Yahoo Finance on Friday. . “We’re not worried about that.”

“One thing to keep in mind is that they now have over 200 million Prime members. That’s more than a third since the last time they gave us a number, which was in January 2020,” he added. “In addition, Prime members are ordering more often and they are ordering a greater variety of products. So, we think they have gathered a ton of new customers during the pandemic and most of those customers will stay Amazon customers. And so they have a lot of momentum, and obviously that’s going to slow down a bit because you’re going to start the “anniversary” of really difficult comparisons. But it’s not going to slow down as much as some investors fear. ”

Amazon’s first-quarter net sales jumped 44 percent to $ 108.52 billion, marking a second straight quarter with revenue of more than $ 100 billion. The pace was driven by each of Amazon’s e-commerce, cloud computing and advertising segments, with net sales of online stores of $ 52.9 billion and net revenues of Amazon Web Services of $ 13.5 billion for each topping. Earnings per share of $ 15.79 were easily above the expected $ 9.69.

The Seattle-based company also signaled that this force is set to continue in the current quarter. Amazon forecasts net sales of between $ 110 billion and $ 116 billion for a jump of about 30% year-on-year, with Prime Day shopping moving into the second quarter of this year. Operating revenues are likely to reach between $ 5 billion and $ 8 billion, including an estimated negative impact of another $ 1.5 billion due to virus-related costs.

Stronger-than-expected results and guidance also catalyzed a number of price increases in Wall Street firms. Among them were JPMorgan Chase analyst Doug Anmouth and Cowen analyst John Blackledge, who raised their stock price targets to $ 4,600 from $ 4,400. Raymond analyst James Aaron Kessler raised his price target to $ 4,125 from $ 4,000.

“Amazon achieved strong first-quarter results driven by growth in major retail (with international acceleration) as well as accelerating growth in higher-margin segments, including AWS and advertising,” Kessler wrote in a note Thursday night. It maintains a “Excellence” rating and increases its price target “given 1) the continued momentum in e-commerce sales; 2) Ongoing leadership and momentum in the cloud; 3) strong advertising growth; and 4) an improving margin profile due to the effectiveness of retail scale, AWS and advertising. ”

Shares of Amazon rose 6.6% for the year to the end of Thursday, performing lower than earnings from the S&P 500 by 12% over that period.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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