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Amazon is zooming towards a record high

Feb 21, 2018, 21:23 IST

Markets Insider

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Amazon is up more than 1% in trading Wednesday, closing in on a new high. Shares set their previous record of $1,498 after gaining more than 6% on estimate-topping earnings on February 2.

The company has escaped the volatility that rocked markets earlier this year relatively unscathed, and has easily outpaced the benchmark S&P 500. It's up 25% year-to-date, compared to the S&P 500's 1% gain.

Amazon has been rapidly diversifying its business lines, with significant investments in cloud computing, healthcare, and groceries - all of which have taken significant chunks of market value away from competitors.

Even in its flagship e-commerce division, there is still plenty of room to grow.

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"Apparel, shoes, and accessories as well as home improvement and furniture remain growth opportunities as they are only 4% and 20% penetrated online," Credit Suisse said in a note to clients earlier this year. "These are also categories that have larger absolute revenue dollars versus consumer electronics and media."

Shares of Amazon have gained 73% in the past year.

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