Wall Street now predicts both Amazon and Alphabet will hit $1,000 in the next year
- Analysts now expect shares of both the tech stalwarts to hit $1,000 a share over the next 12 months, according to the new average price forecast from FactSet.
- A month ago, the Wall Street targets for both were below $1,000.
- Thursday night, Alphabet smashed first-quarter earnings and sales estimates, while Amazon saw its quarterly revenue jump 23 percent year over year.
Wall Street has high expectations for Amazon and Google's parent company, Alphabet, after they reported great earnings.
Analysts now expect the tech investors' cult favorites to hit $1,000 a share over the next 12 months, according to the average price forecast collected by FactSet.
The average price 12-month price target for Amazon is $1,049.23 a share and Alphabet's totals $1,031.36. Alphabet and Amazon both hovered around $930 during Friday trading. A month ago the Wall Street targets for both were below $1,000.
Alphabet smashed first-quarter earnings and sales estimates as mobile search and YouTube drove ad sales higher. Meanwhile, Amazon saw its quarterly revenue jump 23 percent year over year as sales for Amazon Web Services totaled $3.66 billion.
While it's not clear who will break the millennium mark first, Raymond James' Aaron Kessler — an analyst who covers both — said he's leaning toward Alphabet.
"We're more positive on Google for now as they have a better valuation," Kessler said. "Until we see more meaningful margin expansion, I think [Amazon] shares are going to be range-bound in the near term."
That said, investors may have to be patient to see either stock reach the $1,000 per-share mark.
"Both of these stocks were making new highs leading into earnings, so I'd expect short-term traders to sell some of these shares after the spike," said Marc Chaikin, CEO of Chaikin Analytics.
The two stocks have been on a tear this year, with Google's Class A shares rising 17.5 percent and Amazon' soaring 24.6 percent.
Amazon (green) and Alphabet Class A (blue) in 2017
Source: FactSet