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Amazon to reach $1,110 this year on increasing e-commerce dominance, JPMorgan says

Key Points
  • JPMorgan reiterates its overweight rating on Amazon predicting the company's e-commerce market share will rise to 50 percent by 2019.
  • The firm's December 2017 price target for the internet company is $1,110, representing 15 percent upside from Tuesday's close.
A United Parcel Service delivery driver carries Amazon.com packages in Brooklyn, N.Y.
Victor J. Blue | Bloomberg | Getty Images

Investors should buy Amazon stock because its share of the U.S. e-commerce market will rise significantly in the next two years, according to JPMorgan, which reiterated its overweight rating on the internet company.

"We believe Amazon is well positioned as the market leader in e-commerce, where it's still early days with U.S. e-commerce representing ~12% of adjusted retail sales (ex-gas, food, and autos)," analyst Doug Anmuth wrote in a note to clients Wednesday. "We believe Amazon continues to show strong ability to take share of overall e-commerce, and its flexibility in pushing first-party vs. third-party inventory and its Prime offering both serve as major advantages."