Spark

Bedrock

Muse

<h2 id="tldr">TLDR</h2>
<ul>
 <li>Morgan Stanley raises its Amazon price target to $350, indicating 40% potential upside.</li>
 <li>AMZN stock gains around 2% after falling 4.7% during the previous week.</li>
 <li>Morgan Stanley forecasts AWS revenue growth of 47% in 2027 and 42% in 2028.</li>
 <li>Amazon’s robotics operations could deliver annual savings of $2 billion to $4 billion under the bank’s scenario.</li>
 <li>Wall Street analysts remain largely bullish as Amazon prepares to report quarterly earnings on October 29.</li>
</ul>
<p>Amazon (<a href="https://knockoutstocks.com/stock/AMZN" rel="noopener noreferrer nofollow">AMZN</a>) shares climbed on Monday after Morgan Stanley raised its price target, citing stronger cloud growth and new uses for artificial intelligence. AMZN stock gained about 2% after ending Friday at $250.</p>
<p><a href="https://knockoutstocks.com/stock/AMZN" rel="noopener noreferrer nofollow"><br><img src="https://knockoutstocks.com/api/stocks/AMZN/embed" alt="AMZN Stock Card"><br> Amazon.com, Inc., AMZN<br></a></p>
<p>Analyst Brian Nowak increased his target to $350 from $335 and maintained an Overweight rating. The new target represents 40% upside from Friday’s close. Morgan Stanley also named Amazon a top pick. Its lower and upper share-price scenarios stand at $220 and $410.</p>
<h2 id="aws-growth-forecast-rises">AWS Growth Forecast Rises</h2>
<p>Morgan Stanley expects Amazon Web Services revenue to grow 47% in 2027 and 42% in 2028. The bank previously projected growth of 41% and 37%, respectively. The forecasts account for purchases of new servers and data-centre equipment.</p>
<p>Nowak expects greater demand for computing power as companies build AI products. His forecast follows Nvidia’s projection that AWS will deploy about two million GPUs over 2027 and 2028. Separately,<a href="https://blockonomi.com/nvidia-nvda-stock-slips-as-company-expands-nemotron-3-5-ai-models/" rel="noopener noreferrer nofollow"> Nvidia expanded its Nemotron AI models</a> last week, adding tools for developers working with AI.</p>
<p>Amazon’s Bedrock service also forms part of the outlook. It gives businesses access to AI models for developing applications. Morgan Stanley expects AWS operating margins to reach 42% in 2027.</p>
<h2 id="ai-shopping-faces-new-competition">AI Shopping Faces New Competition</h2>
<p>Morgan Stanley also expects Amazon to benefit from shopping tools that use AI to search for products and complete tasks. Nowak pointed to its delivery network and customer relationships.</p>
<p>Meta is also developing AI tools. Recent coverage of<a href="https://blockonomi.com/meta-platforms-meta-stock-slips-as-muse-spark-open-ai-debuts/" rel="noopener noreferrer nofollow"> Meta’s Muse Spark Open launch</a> described a model for coding and automated tasks. Nowak said holiday shopping could test new consumer AI shopping agents.</p>
<h2 id="robotics-could-lower-delivery-costs">Robotics Could Lower Delivery Costs</h2>
<p>Warehouse automation forms another part of Morgan Stanley’s forecast. Amazon plans additional robotic fulfilment facilities and upgrades to existing sites during 2027, according to the analyst’s report.</p>
<p>The bank estimates that moving another 10% of global orders through robotic facilities could save $2 billion to $4 billion annually. Those savings depend on how widely Amazon adopts the technology.</p>
<h2 id="amzn-stock-rebounds-before-earnings">AMZN Stock Rebounds Before Earnings</h2>
<p>Amazon shares gained after losing 4.7% last week amid a broader technology sell-off. Earlier coverage of<a href="https://blockonomi.com/amazon-com-inc-amzn-stock-drops-as-screenless-fitness-bracelets-gain-popularity/" rel="noopener noreferrer nofollow"> Amazon’s Friday stock decline</a> recorded a close of $250.</p>
<p>The shares remain about 12% below their August 3 closing price of $284.02. LSEG data show 62 of 64 covering analysts rate the stock Buy or Strong Buy. Amazon plans to release quarterly earnings on October 29.</p>
<p>The post <a href="https://blockonomi.com/amzn-stock-rises-as-morgan-stanley-sees-40-upside216674-2/" rel="noopener noreferrer nofollow">AMZN Stock Rises as Morgan Stanley Sees 40% Upside</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

AMZN Stock Rises as Morgan Stanley Sees 40% Upside

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