Barron’s Says Amazon’s Stock Is Worth More

The finance magazine Barron’s thinks Amazon’s stock is a good buy. Yesterday 2 analysts raised their valuation of Amazon’s stock from $195 to $230. (The stock is currently trading for $189.) They based their opinion on the popularity of the Kindle, as well as the strong growth of Amazon’s hosting services:

In our view, Kindle remains the best ebook reader in the market and competition is unable to dent its market share. We also believe that AWS continue to add new customers and new verticals every month, fueled by massive adoption of Cloud Computing, especially by large enterprises (AWS is no longer limited to start-ups and small- to mid-sized businesses). We believe that Amazon will likely remain in investment mode during first-half 2011 but these investments are needed to support the better-than-expected demand and to strengthen competitive moats.

via Barron’s