AWS Path to $1 Trillion Revenue Fuels Amazon Stock Price Surge
Amazon's stock may be poised for a significant price increase as Morgan Stanley details AWS's path to $1 trillion in revenue.
In a new report, lead equity analyst Brian Nowak highlighted that the cloud unit expansion 'paints a path toward $500 billion of company-wide EBIT and a $500 share price by year end 2027.'
Nowak maintained an Overweight rating on Amazon stock with a base target of $335, offering around 28% gains. However, he emphasized that the $500 bull target is 'increasingly in play if AWS delivers like we think it could.'
Amazon's management expects its cloud computing unit to become a $1 trillion annual revenue business, with strong overall profit margins and cash flow.
Morgan Stanley expects Amazon to add 6 gigawatts of computer power in 2026 and 8 gigawatts in 2027. If AWS continues to grow at this rate, it could hit $1 trillion in total sales by 2035 or as early as 2034 with higher sales rates.