Stock of Amazon Reaches Highest Close Since 2013

Amazon.com Inc. achieved its highest closing stock price in over a year on Monday, reflecting growing optimism regarding the e-commerce giant's potential to enhance the financial performance of its retail operations.

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Amazon's shares (AMZN, -1.60%) concluded Monday's trading session at $143.10, registering a 3.5% increase. This closing price marked the most favorable outcome since August 16, 2022, when the stock closed at $144.78, as per Dow Jones Market Data.

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UBS analyst Lloyd Walmsley expressed a positive outlook on Amazon's e-commerce division on Sunday. In his analysis, he outlined a path for the company to achieve double-digit margins in North American retail over time, with expectations of reaching 8% to 9% by the year 2025. To provide context, the current consensus estimate for North American retail margins in 2025 stands at 5.4%.

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Despite maintaining his buy rating and an unchanged price target of $175 for Amazon shares, Walmsley expressed encouragement over recent developments within the company. These developments include an enhanced collaboration with Shopify Inc. (SHOP, -1.83%) and the introduction of new fees for its Seller Fulfilled Prime program.

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Regarding these advancements, Walmsley noted, "We see this agreement with Shopify, as well as the reinstatement of the Seller Fulfilled Prime (SFP) program, as a win/win and signs that AMZN [has] started ramping strategies to externalize and monetize Prime off-platform."

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In terms of performance, Amazon shares have seen a remarkable year-to-date gain of 70%, a notable contrast to the S&P 500 (SPX), which has advanced by 17% during the same period.

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