Key Stats for Amazon Stock
- Price change for Amazon stock in the last 6 months: 6%
- $AMZN Stock Price as of Oct. 19: $262
- 52-Week High: $287
- $AMZN Stock Price Target: $331
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What Happened?
Morgan Stanley named Amazon (AMZN) its top pick on Monday, Investing.com reports. The investment bank raised its AMZN stock price target to $350 from $335 and kept an Overweight rating.
Amazon shares traded 5% higher yesterday, following the price upgrade.
The firm sees about 40% upside to its target and also sees a 3-to-1 risk-reward ratio, which offers a margin of safety.
The analysts pointed to AWS growth and its ability to run as a “rule of 90” company. They also cited better visibility for Bedrock and Amazon’s position in agentic commerce.
The firm raised its AWS forecasts and now expects 47% growth in 2027 and 42% in 2028 due to higher Nvidia GPU shipments.
It also thinks AWS can earn incremental EBIT margins in the high 40s in 2027 and 2028, which could help Amazon earn about $16.50 per share in 2028.
Morgan Stanley listed five catalysts. They include AWS’s path toward $1 trillion in revenue, Bedrock’s strength in the inference phase of AI, and agentic commerce.
It also noted that Amazon plans to more than double its fleet of robotic arms in 2026.
Those themes match what management said. AWS revenue grew 36.7%, its fastest pace in 18 quarters, while its annualized run rate is now $169 billion.
CEO Andy Jassy said AWS could become a $1 trillion annual revenue business over time.
Backlog stands at $496 billion, while chips and AI each have run rates above $25 billion, growing triple digits.
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What the Market Is Telling Us About Amazon Stock
For Amazon stock, the upgrade-style call adds to strong momentum, but the capex spending is huge.
Amazon now expects about $220 billion in capex in 2026, up from $200 billion, partly due to higher memory costs. Jassy admitted this will create free cash flow headwinds in the short term.
There are other watch points. Q3 sales guidance was $197 billion to $202 billion, with Prime Day timing muddying the comparison. Amazon stock also faces higher shipping and fuel costs.
Laguarta said next year’s pricing will stay below 2025’s.
Still, Jassy said demand for 2028 is already “striking.” Amazon stock may keep trading on whether AWS growth outpaces spending.
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So what is Amazon stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
