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Amazon Stock Jumps 5% After Morgan Stanley Top Pick Call
Why is Amazon stock up today?
Amazon (AMZN) stock rose about 5% on Monday to near $262 after Morgan Stanley named it a top pick, citing faster AWS cloud growth and its Bedrock AI platform.
Key numbers
| AMZN share price | $262.42+5% vs $250 Friday close |
|---|---|
| Morgan Stanley price target | $350from $335 |
| Implied upside | ~40%vs Friday's $250 close |
| AWS 2027 growth forecast | 47%from 41% |
| AWS Q2 2026 sales | $42.2B+37% YoY |
| 2028 EPS estimate | ~$16.50Morgan Stanley |
What happened
Amazon (AMZN) stock rose about 5% on Monday to near $262 after Morgan Stanley named it a top pick, citing faster AWS cloud growth and its Bedrock AI platform. Shares were already higher before the opening bell. Morgan Stanley lifted its price target (where it thinks the stock could trade) to $350 from $335, about 40% above Friday's $250 close. It now expects AWS, Amazon's cloud unit, to grow sales 47% in 2027, up from 41% before. It also sees Bedrock, Amazon's service for building AI apps, gaining investor attention.
Why it matters
Amazon matters to many everyday investors because AWS, its cloud arm, grew sales 37% in the latest quarter, its fastest pace in 18 quarters. Morgan Stanley is betting that demand for AI keeps that speed up through 2028. A big bank's call can move a share price, but forecasts can be wrong. The next real test is Amazon's earnings report on October 29.
Who this affects
- MarketbullishMedium impact
- Tech investors see AI cloud demand rewarded; mildly positive.
- CompanybullishMedium impact
- Amazon shareholders gain as shares jump about 5%.
- CompetitorsmixedLow impact
- Microsoft and Alphabet rose about 1%, trailing Amazon's gain.
- IndustrybullishMedium impact
- Cloud and AI chip suppliers may gain from higher spending.
Amazon vs Microsoft, Alphabet
How we got here
Amazon reports Q2: AWS sales up 37% to $42.2B, fastest growth in 18 quarters.
Amazon closes Friday near $250 per share.
Morgan Stanley names Amazon a top pick, raises target to $350 from $335.
Amazon shares climb about 5% to near $262 during Monday trading.
What to watch
- Amazon third-quarter results after market close, with AWS growth in focus.2026-10-29
- Amazon's own Q3 sales forecast of $197.0–202.0B versus actual results.2026-10-29
- Holiday-season test of Amazon's AI shopping agents, a Morgan Stanley catalyst.Q4 2026
Educational content only. Not investment advice.
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