Morgan Stanley named Amazon (AMZN) its top pick, raised its price target to $350 from $335, and kept an Overweight rating. The stock rose about 5% after the upgrade; the firm sees roughly 40% upside and a 3-to-1 risk-reward ratio. It expects AWS growth of 47% in 2027 and 42% in 2028 due to higher Nvidia GPU shipments, and estimates Amazon could earn about $16.50 per share in 2028. However, Amazon expects capex of about $220 billion in 2026, up from $200 billion, which management says will create short-term free cash flow headwinds. AWS revenue grew 36.7%, its fastest pace in 18 quarters, and backlog stands at $496 billion.
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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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