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Investing.com - Morgan Stanley has raised its price target on Amazon.com (NASDAQ:AMZN) to $315.00 from $300.00 while maintaining an Overweight rating on the stock. The e-commerce and cloud giant, currently trading at $222.86 with a market capitalization of $2.38 trillion, has seen analysts set targets ranging from $230 to $306, according to InvestingPro data.
The firm cited Amazon’s better-than-expected third-quarter results and guidance, with AWS accelerating to 20% year-over-year growth compared to Morgan Stanley’s previous estimate of 18.5%. The analyst noted this performance demonstrates how "revisions trump narrative in this AI winner/loser and ROIC-focused market." Amazon’s overall revenue grew 10.87% in the last twelve months, with the company earning a "GREAT" financial health score of 3.2 on InvestingPro’s scale.
Morgan Stanley outlined four reasons for optimism about faster AWS growth: further gigawatt expansion by year-end with another 1GW on top of the 3.8GW added in the trailing twelve months, and doubling of Trainium2 availability with approximately 500,000 more chips coming by year-end.
The firm also highlighted Amazon’s plan to double AWS gigawatt capacity by 2027, which could mean adding an estimated 10+ gigawatts over the next 24 months. Additionally, AWS signed more new business in October than during the entire third quarter period.
Morgan Stanley raised its earnings per share estimates for 2026 and 2027 by 5% and 6% respectively, and noted that a Trainium3 announcement could come as early as the re:Invent conference in December.
In other recent news, Amazon.com has seen several analysts raise their price targets following its strong financial performance. Evercore ISI increased its target to $335, citing Amazon’s impressive third-quarter earnings results, which included revenue of $180 billion and a record-high operating income margin of 12%. This performance exceeded analyst expectations by over 1%. Similarly, BMO Capital adjusted its target to $300, noting a 20% growth in Amazon Web Services (AWS), the fastest since late 2022. Citizens also raised its target to $300, highlighting Amazon’s revenue and operating income surpassing the high end of guidance. BofA Securities set a new target of $303, mentioning strong demand for Amazon’s Trainium chips as a growth driver. Telsey Advisory Group, maintaining an Outperform rating, increased its price target to $300, based on an updated EBITDA estimate for 2026. These developments reflect Amazon’s robust financial health and growth prospects, according to various analyst firms.
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