Shares of Amazon.com (Nasdaq: AMZN) soared more than 17 percent on Thursday, gaining 15-1/16 to 103-5/8. Amazon.com stock was boosted by the buy recommendation it received from J.P Morgan, which set a price target of $160 for the stock.
This target is an aggressive one, and investors might want to take note of what happened last year before they get too excited. Last year, Henry Blodget, then with CIBC Oppenheimer, gave Amazon.com a pre-split target of $400. The stock soon surpassed that mark as investors piled on, but Amazon.com fell hard after the holiday season before staging its latest comeback.
Investors need to understand that it is tough to value a company with increasing losses, and they should be ready for a roller-coaster ride with Amazon.com stock. That said, Amazon.com could continue to climb in the short term. In this market, momentum obviously means a lot.