Amazon.com, Inc. shares reached new all-time highs on Tuesday after the e-commerce giant announced that it would launch a health care company with JPMorgan Chase & Co. and Berkshire Hathaway Inc. While the initiative remains in the planning stages, the idea is for the member companies to leverage scale and expertise, as well as tech solutions, to provide affordable and transparent healthcare to their U.S. employees.
Even prior to the health care announcement, analysts have remained bullish on Amazon’s potential over the long term. Morgan Stanley analysts increased their price target to $1,400 per share, citing Amazon’s ad opportunity and higher-margin business models. Shortly after, Citi analysts reiterated their Buy rating and increased their price target from $1,400 to $1,600, calling the stock a “top pick” due to its ad opportunity and underappreciated potential. (See also: Amazon Near Big Pullback After 20% Gain: Piper Jaffray.)
Amazon shares moved sharply higher after the company announced health care plans, but traders will be watching these key levels. …read more
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