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Amazon Jumps 5% as Morgan Stanley Names It Top Pick on Faster AWS Growth; Microsoft and Alphabet Edge Higher
Morgan Stanley said Amazon could benefit from 47% AWS growth in 2027 and rising AI-driven demand as it kept an overweight rating.
- On Monday, Morgan Stanley analyst Brian Nowak raised his price target for Amazon to $350 from $335, maintaining an Overweight rating. He cited faster cloud growth, higher profits, and AI-related opportunities as key drivers.
- Following Nvidia's disclosure that Amazon Web Services expects to deploy approximately 2 million GPUs across 2027 and 2028, Nowak upgraded his AWS revenue growth forecast to 47% for 2027. The revised outlook reflects substantially accelerated expectations.
- Morgan Stanley frames robotics as a 2027 catalyst, estimating every additional 10% of units through automated fulfillment could save $2 billion to $4 billion annually. The firm identified better visibility into Bedrock as another potential catalyst.
- Amazon shares jumped 5% to $262.42 following the analyst update, outpacing Microsoft stock and Alphabet stock, which each gained 1%. The Technology Select Sector SPDR ETF gained 2% on the day.
- October 29 serves as the next checkpoint for the longer-term thesis, with Amazon's third-quarter earnings report expected after market close. Analysts currently estimate earnings per share of $1.96 and revenue of $202.21 billion.
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Amazon Jumps 5% as Morgan Stanley Names It Top Pick on Faster AWS Growth; Microsoft and Alphabet Edge Higher
Morgan Stanley just put a bold new target on Amazon and called it a top pick, but the reasons behind the upgrade go far beyond the cloud spending story investors already know.
·Lakewood, United States
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Total News Sources13
Leaning Left2Leaning Right1Center2Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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