Morgan Stanley names Amazon top pick, raises price target to $350
What happened
Morgan Stanley analyst Brian Nowak named Amazon a 'top pick' for the firm's internet coverage on Monday, October 19, reiterated an Overweight rating, and raised his price target to $350 from $335 — implying roughly 40% upside from Friday's $250 close and a three-to-one risk-reward profile. Nowak argued Wall Street underappreciates Amazon Web Services' growth and profit runway, projecting AWS revenue growth of 47% in 2027 with adjusted margins reaching 42% (a 'Rule of 90' company), driven by enterprise adoption of its Bedrock AI platform. He also cited Amazon's ability to capture shopping from AI agents and its robotics investments in fulfillment centers as durable advantages.
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Start your free 14-day trialWho’s affected
- Amazon (AMZN) — direct subject; shares rose 2.5%-3.3% Monday morning to around $256
- Meta (META) — the call explicitly rejects the thesis that Meta's Muse agent will displace Amazon in e-commerce
- Microsoft (MSFT) and Alphabet (GOOGL) — AWS growth and Bedrock adoption are framed as competitive with Azure and Google Cloud in enterprise AI