Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

Morgan Stanley sees 35% upside for Amazon stock, here’s why

admin by admin
July 11, 2025
in Politics
0
Morgan Stanley sees 35% upside for Amazon stock, here’s why
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Morgan Stanley revised its outlook on Amazon after tariffs between the US and China came to a reasonable level.

The brokerage maintained the overweight rating and raised the target for Amazon from $250 to $300, indicating a 35% upside from the previous day’s closing price.

The move comes as Amazon stock has already rallied over 20% in the past three months, significantly outperforming the S&P 500’s gain of more than 17% during the same period.

In the last month alone, Amazon shares have added more than 4%.

Analyst Brian Nowak pointed to an improved macroeconomic environment as a major reason for the upgraded forecast.

“The macro backdrop has significantly improved since mid-April,” Nowak noted, referencing a period when he had previously lowered Amazon’s earnings estimates in response to higher tariff rates announced by the Trump administration.

At that time, the US imposed tariffs totaling 145% on Chinese imports.

However, with the rate now reduced to 55%, Nowak has adjusted his estimates to reflect the more favorable trade landscape.

Rebound in AWS and Anthropic’s expanding role

Alongside a better trade environment, Amazon Web Services (AWS), the company’s cloud computing arm, is also expected to experience renewed momentum.

Nowak highlighted a lessening of supply constraints and increased contributions from AI startup Anthropic as key factors driving this improvement.

Anthropic, in which Amazon has invested significantly, is expected to become a growing part of AWS’s revenue stream. “Looking ahead, we model Anthropic to reach $10 billion/$19 billion of revenue in 2026 and 2027,” Nowak wrote.

Based on estimated gross margins of 60% (excluding support costs), and assuming 75% of the cost of goods sold flows through AWS, Anthropic’s contribution could expand from the current level of around 60 basis points to approximately 150 basis points or more.

This expected acceleration in AWS growth comes at a crucial time, as Amazon continues to strengthen its position in the competitive cloud computing sector, particularly in artificial intelligence services.

Amazon is also considering to invest more in Anthropic, Financial Times reported on Thursday.

Amazon has already invested $8 billion in the AI company.

Market confidence remains high

Investor sentiment around Amazon remains largely positive.

According to LSEG, 70 out of 73 analysts covering the stock have either a “strong buy” or “buy” rating.

The consensus price target sits at around $245, indicating over 10% upside from current levels even before considering Morgan Stanley’s more bullish $300 projection.

Morgan Stanley’s updated outlook underscores how easing macroeconomic pressures, particularly around trade, are opening the door for tech giants like Amazon to regain momentum.

With a recovering AWS business and expanding influence from strategic AI investments like Anthropic, Amazon appears well-positioned to capitalize on the more stable environment heading into 2026 and beyond.

The post Morgan Stanley sees 35% upside for Amazon stock, here’s why appeared first on Invezz

Previous Post

SharpLink Acquires $25.7 million Ethereum, ETH Price Jump to $3000 

Next Post

Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

admin

admin

Next Post
Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

Trending News

Nippon Steel to sell $211 million in assets to manage debt amid U.S. Steel deal

Nippon Steel to sell $211 million in assets to manage debt amid U.S. Steel deal

September 20, 2024
Elon Musk accuses OpenAI CEO Sam Altman of backing anti-Trump media

Elon Musk accuses OpenAI CEO Sam Altman of backing anti-Trump media

January 23, 2025
These 2 emerging markets stocks could return 50% each in 2025

These 2 emerging markets stocks could return 50% each in 2025

December 14, 2024
Subscribe to Insightful Word


    Recent News

    Tesla ordered to pay $329M over fatal autopilot crash in Florida

    Tesla ordered to pay $329M over fatal autopilot crash in Florida

    August 2, 2025
    Why Friday’s sell-off in S&P 500 was not surprising and what comes next

    Why Friday’s sell-off in S&P 500 was not surprising and what comes next

    August 2, 2025
    Retail investors shift focus to Europe as US valuations stretch

    Retail investors shift focus to Europe as US valuations stretch

    August 2, 2025
    Berkshire Hathaway posts 4% dip in Q2 operating profit, writes down Kraft Heinz stake

    Berkshire Hathaway posts 4% dip in Q2 operating profit, writes down Kraft Heinz stake

    August 2, 2025

    Recent News

    Tesla ordered to pay $329M over fatal autopilot crash in Florida

    Tesla ordered to pay $329M over fatal autopilot crash in Florida

    August 2, 2025
    Why Friday’s sell-off in S&P 500 was not surprising and what comes next

    Why Friday’s sell-off in S&P 500 was not surprising and what comes next

    August 2, 2025

    Latest News

    • Tesla ordered to pay $329M over fatal autopilot crash in Florida
    • Why Friday’s sell-off in S&P 500 was not surprising and what comes next
    • Retail investors shift focus to Europe as US valuations stretch

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.