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Amazon.com (AMZN) Stock Still Has Tremendous Upside

In the past 10 years, Amazon.com ( AMZN) stock is up an incredible 2,090 percent. Yet even after Amazon's historic Wall Street run, the stock may still have more than 100 percent upside in coming years.

According to Barclays analyst Ross Sandler, Amazon could become one of the world's first $1 trillion companies. The company has a dominant position in the primary growth drivers of today's internet business, especially e-commerce and cloud computing. In addition Amazon will also likely play a large role in the key technology of tomorrow, such as Internet of Things and artificial intelligence.

"AMZN is arguably the best story in the space, with the most open-ended growth opportunity and most highly functional organization," Sandler says in a new research note. "AMZN is likely to be one of the first trillion-dollar market cap companies; it's just a question of when, not if, in our view."

In fact, Sandler says Amazon's AWS segment could eventually be a $100 billion business on its own.

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On Tuesday, Barclays initiated coverage of Amazon stock with an "overweight" rating at a $1,120 price target. While Barclays' price target represents more than 32 percent upside from Amazon's current share price, the $1 trillion market capitalization projection suggests even more gains from Amazon in years ahead.

[Read: What Industry Will Amazon Enter Next?]

Based on today's market cap of only $415 billion, Amazon's share price would need to increase by more than 140 percent for its market cap to hit $1 trillion.

While Barclays looks ahead to the next era of Amazon technology, Cantor Fitzgerald analyst Youssef Squali sees plenty of growth potential remaining in Amazon's e-commerce business.

"The combination of accelerating brick-and-mortar store closings, the rise in Amazon's private label offerings, its enormous scale and superior value proposition put it on pace to dominate," Squali wrote in a research note on Wednesday.

Cantor Fitzgerald may not be as bullish on Amazon in the near-term as Barclays, but the firm also has an "overweight" rating on the stock and a $970 price target.

[Read: How to Invest in Streaming Media.]

Amazon has been an unstoppable force over the past 10 years, but the tech giant is showing no signs of slowing down. If Amazon maintains its pattern of execution and innovation, the stock may continue to lead the market in the next 10 years as well.



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