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Amazon stock rises as Morgan Stanley raises price target, citing strong AWS growth despite high spending.

Analyst Insights
20 Oct 2026
24/7 Wall Street
View Source
Bullish
Amazon stock rises as Morgan Stanley raises price target, citing strong AWS growth despite high spending.

Amazon's stock jumped 5.18% after Morgan Stanley raised its price target and maintained an overweight rating, highlighting AWS's strong growth and profit potential. Despite negative free cash flow and nearly $200 billion planned capital expenditures, AWS's 37% revenue growth and a $496 billion backlog support optimism. Analysts see a 25% upside with a price target around $329, driven by AWS, AI, and advertising growth. Risks include ongoing cash burn and high spending, but operating cash flow improvements and long-term contracts provide some confidence.

Amazon's market cap stands at $2.83 trillion as of Oct 21, 2026, with a daily trading volume of 54.7 million shares on Pluang. Despite the article highlighting a 5.18% price jump, Amazon's stock price on Pluang rose modestly by 0.27% to $263.16 as of the same date and time. Investor activity on Pluang shows a majority selling sentiment at 76%, contrasting with the optimistic analyst outlook from Morgan Stanley.

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