Amazon shares rose about 5% to $262.45 after Morgan Stanley's Brian Nowak named the stock a top pick and raised his price target to $350 from $335. His 2028 earnings estimate is 24% above consensus and his 2027 capital spending forecast is 28% above it, a bet that heavier spending will turn into profit sooner. He expects AWS growth of 47% in 2027 and 42% in 2028, supported by Nvidia's plan to deploy 2 million more GPUs for AWS across those years. Capital spending of $355 billion in 2027 would be about $77 billion above consensus, while consensus free cash flow is still negative for 2027 before recovering in 2028. The stock trades at 28.85 times normalized forward earnings, and the test comes on October 29, when AWS margins will show whether profits can keep pace with spending.
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AMZNMorgan Stanleycloud computingAI investment
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/19/2026 | 262.45 |
| Change that session | +4.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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