Brent Lewis
Amazon CEO Jeff Bezos
Oppenheimer just adjusted its 12-month price target to $930, about 28% higher than Tuesday's opening price.
This rosy outlook is based primarily on the potential of Amazon Web Service. The business has been a consistent performer for Amazon since early 2014.
"Amazon's Web Services segment is now the global leader in cloud computing, and has significant value, in our view," Oppenheimer noted.
"AWS' competitive advantages in procuring, designing and architecting data centers... are driving even higher profitability and lower capital intensity than previously expected."
As servers get cheaper and more efficient, the return on new servers for Amazon Web Services only increases. Oppenheimer says opening a new 100,000 square foot data center would cost Amazon around $376 million, but generate more than a 20% return.
In addition to the rapid expansion and profitability of web services, Amazon is testing out other ways to rake in cash.
Amazon's Echo is probably the most widely known to consumers. The voice-controlled speaker has been popular enough to lead to spinoffs from Amazon's competitors, like Google. Going forward, the retail giant wants to expand Echo's powers into the growing home automation space, according to Mike George, their head of Echo development. So far, the speaker has received glowing reviews on Amazon's website.
Even with the addition all of these additional revenue streams, Amazon's core business isn't exactly hurting.
"Amazon.com is one of the few large-cap companies benefiting from the secular shift to eCommerce," Oppenheimer said.
"The company continues to gain share of US eCommerce with its deep product selection, low-cost express delivery through its Prime program."
People seem to love Amazon's various offerings, from speakers to servers, and shares of Amazon have risen 13% so far this year.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.