Morgan Stanley Sees AMZN Stock Hitting $500 on AWS Growth

Morgan Stanley is optimistic about Amazon's (AMZN) stock price reaching $500 by the end of 2027, citing potential growth from Amazon Web Services (AWS).

The firm believes AWS could become a $1 trillion-a-year business in 8 to 10 years, which would contribute significantly to Amazon's earnings before interest and tax (EBIT).

AWS revenue jumped 37% to $42.2 billion in Q2, marking its fastest growth in 18 quarters.

Amazon's quarterly revenue rose 20% to $200.6 billion, beating Wall Street estimates of $196.6 billion, and operating income increased 43% to $27.5 billion.

AWS' strong performance is attributed to growing demand for artificial intelligence (AI) and expanding computing capacity.