Why Piper Jaffray Analyst Mike Olson Thinks Amazon Shares Are Headed for $3,000

The transcript discusses Amazon's valuation, suggesting a potential share price of $3000 by mid-2021 based on 2022 estimates. It explores the impact of acquisitions and the possibility of spinning off AWS or advertising segments. The analysis compares Amazon's segments with competitors and considers political risks associated with its market cap growth.

What is the estimated share price of Amazon by mid-2021 if split into three segments?

• $2500

• $2000

• $3500

• $3000

What could potentially drive Amazon's share price higher?

• Inorganic growth

• Lower profitability

• Reduced market share

• Decreased competition

Why is AWS considered a more likely spinoff target than Amazon's advertising business?

• AWS is less profitable

• AWS has a smaller market share

• AWS is more aligned with core retail

• AWS operates independently from other segments

How does Amazon's core retail growth rate compare to brick and mortar competitors?

• It is about the same

• It is more than four times faster

• It is slower

• It is slightly faster

What political risk might Amazon face with a market cap of $1.5 trillion?

• Increased taxes

• Encouragement for company breakup

• Higher competition

• Reduced investor interest