Amazon Stock Hinges on 5.9x AWS Expansion

Amazon's stock price could reach $500 if Amazon Web Services (AWS) expands by approximately 5.9 times to achieve its $1 trillion revenue target, according to Morgan Stanley's bull case.

This growth target far exceeds the near-term impact of Prime Video's recent success with the series Ride or Die, which has a 97% critics score and an 83% audience score.

AWS revenue would have to increase by about 5.9 times for Amazon.com Inc. (AMZN) to achieve the stated $1 trillion revenue target.

The company's annualized run rate stands at $169 billion, requiring compounded growth of around 20% each year for a decade to reach this mark.