Amazon: 2 businesses to boost stock by another 25%, analyst says

Devitt added that store closures in the US are continuing at a rapid pace, but consumer sentiment and employment rates are near an 18-year peak, which should benefit its e-commerce business. Meanwhile, Amazon is investing in a number of initiatives, including Prime and further capturing offline retail opportunities, such as acquiring Whole Foods and updating its Amazon Go features. All show that Amazon will grab more market share in the retail space, according to Devitt.

“We support where Amazon’s investment dollars are focused as we believe this better positions the company for continued market share gains and opportunity for greater margin expansion once the company emerges from the current investment cycle,” Devitt said.

Amazon posted $11.6 billion of revenue from cloud business for the six month ended in June, up 49% from last year. By Devitt‘s calculation, global public cloud spending is expected to grow 18% in the next three years, and Amazon’s cloud business will grow 42% in the same period — more than two times faster than the overall market. 

“We expect continued market share gains from Amazon’s cloud business driven by increased adoption among larger enterprises and the public sector, wallet share gains from existing customers, and ongoing product innovation,”  Devitt said. 

On Thursday, Amazon opened a new concept store called Amazon 4-Star, in Manhattan’s SoHo neighborhood. The store only sells items that customers have rated four stars and above, as well as products that the website’s data shows are trending and on customers’ wish lists.

Amazon shares gained almost 2% on Thursday. They’re up 70% this year.

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