Amazon shares closed 5% higher on Monday as Morgan Stanley made the stock its Top Pick and lifted its AWS growth forecasts, alongside a broad rebound in technology shares.
Amazon (NASDAQ: AMZN) shares rose 5% on Monday as Morgan Stanley named the online retailer and cloud computing provider its Top Pick. The investment bank also raised its price target as a wider tech rebound lifted chipmakers and the Nasdaq.
The stock closed the US session at $262.49, up $12.49 from $250.00 on Friday and its highest close since the 28th of August. Shares were already 2.1% above Friday’s close at the open, at $255.25. Amazon led the Dow’s gainers over the session.
AMZN.US
Morgan Stanley kept its Overweight rating on Amazon and raised its price target to $350 from $335. The bank, which also named Amazon a Top Pick, pointed to catalysts including AWS, Amazon’s cloud arm, a path toward $1 trillion of revenue and robotics.
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The forecasts behind the call are specific. Morgan Stanley expects AWS growth of 47% in 2027 and 42% in 2028, citing higher shipments of graphics chips from Nvidia (NASDAQ: NVDA). The bank also sees support from e-commerce, Prime, cloud and advertising.
Amazon’s daily close, 4 September to 19 October 2026, ending at $262.49, the highest close since the 28th of August.
Morgan Stanley analysts said Amazon’s e-commerce, Prime, cloud and advertising businesses were “primed to deliver durable outperformance”.
The note was not the only force at work. Chip stocks, Nvidia and the Nasdaq were all higher, and Amazon was already up at the open, so the note is a likely factor in the jump rather than the sole one.
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Amazon remains about 7.6% below its peak close of $284.02 on the 3rd of August, though it is up 13.7% this year from $230.82 at the end of 2025. The AWS forecasts still have to be borne out.
The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.
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