The U.S. stock market is continuing its run into uncharted territory today -- with the Dow toppling 26,000 for the first time ever -- following a round of positive earnings reactions. However, it's not only earnings that are lifting stocks today, with e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) and streaming name Netflix, Inc. (NASDAQ:NFLX) popping on upbeat analyst attention. Here's a close look at how shares of AMZN and NFLX are reacting to today's price-target hikes.
Oppenheimer increased its price target on Amazon stock to $1,450 from $1,330, while BMO raised the bar even further -- lifting its AMZN price target to $1,600 from $1,200, the highest on Wall Street. The latter target represents expected upside of nearly 23% to Friday's close, and implies a $771 billion market cap, with the brokerage firm explaining Amazon's advertising business "could be a greater catalyst for the shares."
Out of the gate, AMZN stock is up 2.2% to trade at $1,334.38 -- fresh off a new record high of $1,339.94 -- and pacing for its 10th straight win. Should the shares continue this upside through the close, it would mark Amazon's longest daily win streak since July 2013.
And while almost 92% of the analysts covering Amazon already maintain a "buy" or "strong buy" recommendation, there's certainly room for more brokerages to lift their price targets on the FAANG stock. Most recently, AMZN's average 12-month price target was docked at $1,327.36 -- in line with current trading levels.
Ahead of next Monday night's earnings report, Netflix saw its price target raised to $211 from $207 at B. Riley -- which cited domestic tax benefits -- and $260 from $220 at Raymond James, the latter of which sits at a 17.5% premium to Friday's close. In reaction, NFLX stock is up 1.7% at $224.96, and earlier hit a record high of $226.07.
Today's upside is just more of the same for Netflix stock, which has surged more than 66% year-over-year. NFLX options traders have been betting on more upside, too, with those purchasing calls getting a relatively good deal at the moment. The FAANG stock's 30-day implied volatility skew of 7.2% ranks in the 75th annual percentile, meaning calls are pricing in lower volatility expectations than puts.