AMZN
Wall Street says “up,” the tape says “meh”
Amazon got a fresh bull case from Morgan Stanley, which kept its Overweight rating and slapped a $335 price target on the stock. The big idea? AWS could ride the AI infrastructure wave all the way to a $1 trillion revenue run rate someday. That’s not a typo. That’s a very expensive way of saying cloud demand is still doing Pilates and getting stronger.
The AWS dream is getting bigger
Analyst Brian Nowak’s thesis is basically: if Amazon can keep adding compute capacity fast enough, it can keep feeding the AI beast. He’s modeling 6 to 8 gigawatts of new capacity in 2026 and 2027, then assuming more after that, with pricing power doing some of the heavy lifting too.
In his setup, AWS could eventually turn into a profit engine so large it makes today’s numbers look like pocket change. He even floated a 2027 year-end share price near $500 if things break the right way. That’s the kind of forecast that makes investors sit up straighter in their chairs.
Then comes the annoying part: the stock is still down
Despite the bullish call, Amazon shares were lower Monday, down 1.07% at $259.85 in midday trading. Why? Because markets love a good long-term story right up until they decide to trade the nearest headline instead.
- Morgan Stanley sees AWS as the main long-term driver
- The AI buildout could keep boosting compute demand
- Investors, meanwhile, are selling first and reading the note later
Big picture
Amazon doesn’t need every analyst to be right. It just needs enough people to believe AWS can keep scaling like a power-hungry supercomputer with a credit card. For now, Wall Street’s still leaning in — even if Monday’s price action is acting like it missed the meeting.