- Amazon shares leaped to record highs on Tuesday as the firm profits on greater demand for online shopping.
- The e-commerce titan traded as much as 4.6% higher in the session to $2,270 per share. Its last record high was achieved on February 19, the same day the S&P 500 peaked.
- Widespread quarantine activity and retail closures fueled an "unprecedented demand shift" to online sellers like Amazon, Bank of America analysts said in a Tuesday note.
- The company's Whole Foods business is also poised to drive gains amid the pandemic, the team wrote. The grocery chain boosted delivery capacity by 60% but still faces strong demand as shoppers avoid leaving the house.
- Watch Amazon trade live here.
Amazon stock soared to all-time highs in Tuesday trading as the company benefits from strong demand amid the coronavirus pandemic.
The e-commerce giant traded as much as 4.6% higher during the session to a record $2,270 per share. Amazon's previous record was reached on February 19, when shares closed at $2,170.22 alongside the S&P 500's peak. While most components of the benchmark index remain well below their loftiest levels, Amazon has surged on an "unprecedented demand shift," Bank of America analysts wrote in a Tuesday note.
The coronavirus pandemic and related lockdown orders have forced consumers away from physical retailers and toward online sellers. Amazon has shifted its massive logistics chain to prioritize essential items and adjusted its other businesses to better cope with the virus lockdown.
Its Whole Foods chain has already boosted delivery capacity by 60% and still faces strong demand, according to Bank of America. The segment will "help drive 2Q revenue acceleration" despite the broad economic downturn, the team of analysts added.
Though Amazon's first-quarter earnings aren't expected to release until April 23, the company's brisk hiring pace suggests its flagship retail business is booming as well. The company announced on Monday it plans to hire an additional 75,000 employees across its delivery and warehouse operations. The new payrolls come after the firm filled an additional 100,000 new roles in March as the pandemic spread throughout the US and became a global health crisis.
Amazon's web services business also positions the company for strong gains amid the lockdown period. The coronavirus represents a "key turning point" for the cloud computing sector, Wedbush analyst Dan Ives wrote in an April 6 note. Though Microsoft serves as the "Rock of Gibraltar cloud stock to own," Amazon serves as another "core vendor" for firms shifting business online, he added.
Amazon traded at $2,265.35 per share as of 12:30 p.m. ET Tuesday, up roughly 23% year-to-date.
Bank of America maintained its "buy" rating for the stock and a price objective of $2,480.
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