It is one thing when Wall Street analysts are very positive on new technology or innovations in a sector. It is quite another when one of the top analysts on the street proclaims that the enterprise embrace of cloud computing platforms and other public cloud infrastructure architecture and players is the “biggest and most disruptive trend impacting the technology industry today.”
In what can only be described as a new research book, Deutsche Bank’s highly respected software analyst Karl Keirstead and his team do an exhaustive in-depth report on the industry changing effect of the cloud computing and hosting revolution on the technology enterprise world. They maintain, and have a solid thesis to back it up, that many are underestimating how fast this market will grow the public cloud transition.
Deutsche Bank has three top stocks to rated Buy in its report, and the superlatives for one are almost off the charts.
This company is the absolute leader in online retail, as well as a dominate player in cloud storage business, and it just crushed earnings recently. Amazon.com Inc. (NASDAQ: AMZN) serves consumers through retail websites that primarily include merchandise and content purchased for resale from vendors and those offered by third-party sellers.
The company also serves developers and enterprises through Amazon Web Services (AWS), which provides computing, storage, database, analytics, applications and deployment services. Deutsche Bank flat out calls AWS “the fastest-growing enterprise technology company in history” and point out that the stock is up a whopping 60% since financials for AWS were included in the first quarter report this year. With huge growth following, the firm concedes that while others have figured out this play, it is by no mean ubiquitous at this point.
Other Wall Street analysts have noted that Amazon had outstanding unit and revenue growth. They also cite that the online retail giant’s fulfillment advantage over peers may end up being one of the most significant silos in the company’s overall business structure.
The Deutsche Bank price target is raised to $800 from $725. The Thomson/First Call consensus price target is $718.13. The stock closed Tuesday at $625.31.