Amazon Aims for First Record in Months Ahead of Black Friday
(Bloomberg) -- Amazon.com Inc. shares rose on Friday, with the e-commerce company extending a recent advance that has put it on track to close at a record for the first time since July.
The stock gained as much as 1.7% to $3,756.90. While this would represent a closing record for Amazon, shares remain slightly under an intraday peak hit earlier this year.
The advance suggests that investors are feeling more optimistic about Amazon’s ability to navigate supply chain issues in the key holiday season. Over the past month, Amazon has risen 12%, compared with a 3.5% gain in the S&P 500 Index. Despite that, shares have underperformed the overall market so far this year, pressured after a pair of disappointing quarterly results. For 2021, Amazon’s 15% gain has lagged the benchmark index’s 25% rise.
In terms of the holiday shopping period, “secular dynamics remain very favorable for online retail, and no other company can come close to Amazon’s infrastructure and fulfillment,” said Tuna Amobi, an analyst at CFRA. “That is a major competitive advantage.”
©2021 Bloomberg L.P.