Amazon.com's better-than-expected profit margins surprised Wall Street, prompting at least five brokerages to raise their price targets on the world's largest Internet retailer's stock on Wednesday.
Shares of the Kindle maker are poised to open up 9 percent on the Nasdaq, after closing at $260.35 (165.24 pounds) on Tuesday. The stock had hit a record high of $284.72 on Jan. 25.
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"We can't help but stop and wonder whether the Amazon bull case has now pivoted from one of revenue growth to one of margin expansion," Barclays Capital analysts said in a note and raised their target price on the stock to $260 from $245.
The analysts said they would now concentrate on Amazon's ability to manage costs in order to drive margin expansion and operating income growth.