×

Amazon 'could be the first trillion-dollar company' with stock doubling to $2,000, leading analyst says

  • "Honestly, this could be the first trillion-dollar company," leading equity analyst James Cakmak says.
  • U.S. lawmakers have asked regulators to look into whether the Amazon-Whole Foods deal violates antitrust laws.
  • "I mean there is very low risk for the FTC to not approve this deal," he adds.

If Amazon completes its deal with Whole Foods, there's little stopping it from just about doubling to a $2,000 stock, leading equity analyst James Cakmak told CNBC on Thursday.

Cakmak spoke after some U.S. lawmakers have asked regulators to look into whether the Amazon-Whole Foods deal violates antitrust laws. In June, Amazon said it planned to acquire the grocery store chain for $42 a share, in a deal valued at $13.7 billion.

"Honestly, this could be the first trillion-dollar company. I mean there is very low risk for the FTC to not approve this deal. But if they do rubber-stamp it as a yes, I think there's very little to stop this from becoming a $2,000 stock," the Monness, Crespi, Hardt & Co. analyst said on "Squawk Box."

"The internet has changed the game. As companies get bigger, it's better and better for the consumer because you're getting better prices, better experiences and better data," he added.

On Wednesday, two congressmen, Democrat Rep. Jared Polis and Republican Rep. Darrell Issa, suggested to CNBC that Amazon's planned acquisition of Whole Foods did not violate antitrust laws.

But Sen. Cory Booker told Recode in a recent interview that he believes the U.S. government should keep an eye on the size of big companies like Amazon and Google parent Alphabet.

Meanwhile, Amazon is also taking another step into the food space, registering a trademark in the U.S. on July 6 for a meal-kit business.

Amazon had already been testing both food delivery, through AmazonFresh, and meal kits, which deliver fresh ingredients and recipes to subscribers. Amazon first experimented with AmazonFresh in 2007.

The news initially sent shares of meal-kit provider Blue Apron tumbling and prompted CNBC's Jim Cramer to say, "You just have to hope that you don't wake up in the morning and see Amazon has decided to get in your business."

Amazon's stock, trading around $1,065 a share in the premarket Thursday, has done well this year. The shares are up more than 40 percent year to date, according to FactSet.

The company is set to report earnings after the bell on Thursday.

— CNBC's Lauren Thomas and Angelica LaVito contributed to this report.

Morning Squawk: CNBC's before the bell news roundup

Sign up to get Morning Squawk each weekday

Get this delivered to your inbox, and more info about about our products and service. Privacy Policy.
Please enter a valid email address

WATCH: 

This is Amazon's next big target