Report Predicts Amazon Could Be Worth $1 Trillion Within A Year

Amazon could be on its way to reaching a $1 trillion market value within the next year.

Jeff Bezos, Amazon Founder
Amazon Founder Jeff Bezos

Based on a bull case that assumes stock market prices will rise, Morgan Stanley estimated Amazon shares could increase to $2K per share over the next 12 months.

The prediction was made using a sum-of-parts valuation — a process of estimating a company's value by determining what its cumulative divisions would be worth if it was spun off or acquired by another company — that examined Amazon segments such as its Web Services business, subscriptions and advertising to determine the valuation of the company in 2022.

If the calculations are correct, Amazon’s core retail business alone could hit $600B in 2022 while its e-commerce business could see an annual sales growth rate for that same year, CNBC reports. The report also predicts the tech giant could see a 5.5% operating profit margin that year.

Amazon has caused significant disruption in the commercial real estate sector in recent years as it continues to grow its brand and saturate nearly every sector. Even office markets have been affected because its services have encouraged instant gratification, flexibility and convenience. This has resulted in higher demand for modern, mixed-use developments in the office and multifamily sectors.

But no segment has struggled more than retail, which has faced bankruptcies and stores closures while attempting to keep up with changing consumer shopping habits in addition to competing with Amazon.

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