Amazon (AMZN) shares rose 5% after Morgan Stanley named the stock a Top Pick, kept its Overweight rating and raised its price target to $350 from $335. Analyst Brian Nowak says Amazon's growth and profit runway is under-appreciated and has raised his AWS revenue growth forecasts to 47% for 2027 and 42% for 2028, citing expected NVIDIA GPU deployments. His AWS operating margin forecasts of 42% in 2027 and 44% in 2028 are close to the roughly 39% AWS earned in the second quarter, and his 2028 EPS estimate of about $16.50 sits about 24% above the $13.26 consensus. The note flags higher capital spending, which Morgan Stanley forecasts at $355 billion in 2027 and $365 billion in 2028. Amazon reports third-quarter results on Oct. 29, and AWS growth is the key figure to watch.
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/16/2026 | 250.00 |
| Change that session | -1.87% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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