Amazon is up 5% today, and Morgan Stanley sparked the move!
Amazon shares $AMZN are up around 5% today and are trading near $262. The main catalyst came from Morgan Stanley analyst Brian Nowak. He raised his price target from $335 to $350 and once again named Amazon one of his top picks. Compared with Friday’s close at $250, that implies roughly 40% upside.
Why is Nowak so optimistic?
- AWS: He expects cloud growth to accelerate to as much as 47% in 2027. Companies adopting AI through the Bedrock platform are expected to drive it.
- Agentic shopping: According to him, Amazon will benefit from a time when AI agents shop on our behalf.
- Robotics: New automated warehouses planned for 2027 are expected to boost margins.
I mainly see this as a rebound after last week. During the tech sell-off, the stock fell 4.7%. It is still about 8% below its August high of $284, and the company is due to report quarterly results soon. A higher price target from an analyst is nice, but the real test will come from the AWS figures.
Do you believe AWS will really accelerate to 47%?