Amazon Surges After Morgan Stanley Raises Price Target to $350
On October 19, Amazon (AMZN) shares surged by nearly 4% after investment bank Morgan Stanley upgraded the stock as a top pick and raised its price target from $335 to $350. The move was driven largely by expectations of strong growth in Amazon Web Services (AWS), particularly due to increasing adoption of artificial intelligence technologies. Morgan Stanley highlighted five key catalysts for Amazon's potential, including AWS revenue nearly tripling between 2025 and 2028 as AI becomes more widespread. The stock’s performance also benefited from strong Q2 results where AWS reported a year-over-year revenue increase of 37% to $42.2 billion. Investors are closely watching Amazon's upcoming October 29 earnings report, though regulatory risks remain an overhang due to recent scrutiny by UK competition authorities.
Topics: AI adoption Amazon AWS growth Morgan Stanley upgrade