Amazon shares rose more than 5% on Monday after Morgan Stanley named the stock a top pick and raised its price target to $350 from $335, implying roughly 40% upside. The firm expects AWS growth to re-accelerate to 47% in 2027, up from 41%, with operating margins of 42% to 44%, which would support about $16.50 in earnings per share in 2028 based on 21 times earnings. Morgan Stanley argues AWS's growth and profit runway is under-appreciated, citing catalysts including Nvidia's flag that 2 million GPUs are headed to AWS, greater visibility into Bedrock and agentic shopping, and robotics ramps across fulfillment centers. The firm calls Amazon a key agentic enabler and winner, and says Meta's Muse does not change that view.
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AMZN
▲ Likely positiveAmazon
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/16/2026 | 249.94 |
| Change that session | -1.89% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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