Why did Amazon's stock surge 5% in one day? (Amazon stock, Morgan Stanley, AWS, AI revolution) - Wall Street News
Amazon's stock surged nearly 5% after Morgan Stanley named it a top pick and raised its price target to $350. The bank expects the AI revolution to boost growth at Amazon's cloud division, AWS, with growth rates nearly tripling between 2025 and 2028. AWS already reported 37% revenue growth in Q2, reaching $42.2 billion. The article also notes regulatory challenges, including a UK competition authority ruling that Amazon and Microsoft must remove barriers to switching cloud providers.
Amazon's stock surged nearly 5% in Wall Street trading after investment bank Morgan Stanley named it a top pick and raised its price target from $335 to $350 per share. The main reason for the optimism is the AI revolution, which is expected to dramatically boost the company's cloud division, AWS. The bank forecasts that AWS's growth rate will nearly triple between 2025 and 2028, driven by increasing adoption of AI technologies. In the second quarter of this year, AWS already reported 37% revenue growth compared to the same period last year, totaling $42.2 billion. Alongside this, the article notes regulatory challenges, including a UK competition authority ruling that Amazon and Microsoft must remove barriers to switching between cloud providers.