Amazon will be worth $1 trillion one day, Barclays predicts founder and CEO Jeff Bezos.
Getty Images

Investors should buy Amazon shares because the company's earnings this year will come in significantly above expectations, according to Barclays, which initiated coverage on the company with an overweight rating.

"AMZN is on the winning side of the biggest TAMs [total addressable markets] & lowest penetration shifts in consumer internet & enterprise (e-commerce, cloud & new areas like video, IoT [internet of things], AI), and has more runway than just about any other company," analyst Ross Sandler wrote in a note to clients Tuesday. "AMZN is likely to be one of the first trillion-dollar market cap companies; it's just a question of when, not if, in our view."

The analyst's price target for the company is $1,120, representing 31 percent upside from Tuesday's close. Amazon has a market value of $409 billion, according to FactSet.