Amazon shares hit a record high of $284 on August 3, up nearly 45% from their 52-week low in February, before declining more than 7%. Morgan Stanley raised its price target to $350, implying 33% upside, and added Amazon to its top picks list. Analysts outlined five key requirements to lift the stock: AWS revenue growth, better-than-expected AWS operating margins, proof of Bedrock’s strategic importance, evidence Amazon can win in agentic AI, and investor confidence in physical AI benefits. Morgan Stanley expects AWS to generate incremental operating margins exceeding 40% in 2027-2028. Third-quarter earnings due October 29 will be crucial to demonstrate that massive AI investments are generating returns. Amazon, the portfolio’s largest holding at 5.3% weight, must prove its ability to capitalize on AI long-term, from warehouse robotics to autonomous vehicles.
Source: Read the original article
