Amazon (NASDAQ:AMZN) rose after Morgan Stanley named it a top pick and raised its price target to $350 from $335, ahead of its third-quarter report on October 29. The key question is whether AWS can grow fast enough to cover a spending plan that has pushed free cash flow below zero. AWS revenue rose 37% in the second quarter, above the 31% analysts expected, and its backlog is growing at triple-digit rates. Amazon raised its 2026 capital spending plan to about $220 billion from $200 billion, and trailing 12-month free cash flow turned negative from positive a year earlier. Second-quarter GAAP EPS of $5.75, versus an estimate near $1.83, was boosted by a large gain on Amazon's Anthropic stake, which can swing sharply in any quarter.
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Original headline: Should You Buy Jim Cramer and Ken Fisher’s Top AI Stock Pick Ahead of Earnings?
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