09 Jan Need to Know: This one stat shows why Amazon shares have a lot more room to run
By the very early looks of it, this year could be shaping up to be another winner for stocks, as many of 2017’s hot shots sprint out of the gate.
Netflix NFLX, +0.98% , up 55% in 2017, has gained 10% just a few days into the new year, while Facebook FB, +0.77% is nearly 7% higher, after a 61% gain last year. It’s tough to fault investors who are gobbling up stocks as fast as they can and dumping those just-in-case-it-all-goes-pear-shaped hedging-strategies.
Of course, we may all eventually get burned by a meltdown. On that note, check out our chart of the day , which shows how one of the brightest stars in the stock universe — Apple — tends to run into big selloffs every few years.
Our call of the day is not about to spoil anyone’s fun, though, when it comes to another one of last year’s big performers. It comes from Michael Olson and Sam Kemp, analysts at Piper Jaffray, who say Amazon AMZN, +1.44% shares have a lot further to run. That’s because, in contrast to common belief, its biggest market still holds lots of room for more sales — even though Amazon just polished off its best shopping season to date.
The analysts recently surveyed 1,000 U.S. internet users and found the biggest chunk of that group earmarked 0% to 10% of their 2017 holiday spending to Amazon. They also estimated that the Amazon grabbed just a 4% share of last year’s overall U.S. retail holiday spend.
“The conclusion is that Amazon, despite its size and continued strong growth, is arguably still in the early innings of its share gain potential, even in the company’s most penetrated market,” write Olson and Kemp.
The Piper Jaffray pair upped their price target for Amazon to $1,400 from $1,200 a share, sticking to an overweight rating.
Amazon disappoints no one when it comes to its ambitions, with talk of a possible Target acquisition, a push into health care and its launch in Australia. But it may just be its core strategy that keep those shares moving higher: Americans who would rather shop from the comfort of their phones.
Key market gauges
Dow futures YMH8, +0.17% show that index may be ready to resume a record run. S&P 500 ESH8, +0.05% and Nasdaq NQH8, +0.09% futures are also up. Asia had another upbeat day, with the Hang Seng index HSI, +0.36% continuing its own string of record closes. European stocks SXXP, +0.39% remain at their highest levels since 2015.
Check out Market Snapshot for more.
Bitcoin BTCUSD, -0.86% BTCUSD, -0.86% has slipped under $15,000, while ether coins cling to $1,200. Meanwhile, Direxion Asset Management has pulled its request to launch five bitcoin-based ETFs, after regulators raised concerns.
As you revel in these market highs, here’s some food for thought: Even the losers get lucky sometimes, and even the winners have bad days.
It shows drawdowns — the drop from a peak to a low — since 2004 for Apple AAPL, -0.37% .
“This is arguably the most important company of our generation and maybe all time, yet in its third decade of existence, the market still sends it lower by 30% every 2.8 years on average,” notes Emory.
North Korea plans to send athletes — and even cheerleaders — to next month’s Winter Olympics in South Korea.
At the big CES show in Vegas, Intel INTL, -2.27% CEO Brian Krzanich discussed vulnerabilities in the company’s chips, and then moved on to discuss progress on virtual realities, drones and autonomous cars.
SpaceX, led by Tesla TSLA, +6.26% CEO Elon Musk, has suffered a setback after the failed launch and possible loss of a classified military satellite.
Looking for a reason to get into emerging markets? Larry Tentarelli of Trend Trading Signals says they’re getting ready to move higher.
On the economic front, fresh data showed a dip in small-business sentiment. Job openings are headed our way later.
Alabama Crimson Tide head coach Nick Saban (center) celebrates his big win
$11,525,000 — That’s the total compensation annual for Nick Saban, coach of national football college champ Alabama, which beat Georgia in an overtime-thriller late Monday.
Saban’s salary includes $525,000 in bonuses — $100,000 for that championship game alone, according to ESPN reporter Darren Rovell
The game was attended by President Trump, who raised some eyebrows as he attempted to sing along to the national anthem:
Whose bright stripes and broad stars in the perilous night, in a rampart we wash and a da da da da daaa…pic.twitter.com/cKzNLkJNRi
— Shannon Watts (@shannonrwatts) January 9, 2018
“I kept saying, before this came out, to my publisher, I said, oh, you know, you’re printing a lot of copies, there’s nothing really too new in this book.” — That’s Michael Wolff, author of the best seller “Fire and Fury” telling The Late Show’s Stephen Colbert why he was surprised at how successful the book has been.
The West Coast’s second-tallest skyscaper is now open for business
200,000 Salvadorans, who have lived in the U.S. since 2001, may be forced to leave soon
Searing heat wave in Australia leaves over 200 flying foxes dead, dropped to the ground
Iran wants to ban its primary schools from teaching English
A humpback whale is credited for protecting a diver from a shark attack in the South Pacific
Veggie lovers rejoice. Your (pricey) cauliflower steak has arrived.
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