Amazon.com: Morgan Stanley Raises PT to $300, Maintains Overweight Rating

Amazon.com: Morgan Stanley Raises PT to $300, Maintains Overweight Rating

July 02, 2025 - Morgan Stanley has raised its price target for Amazon.com (NASDAQ: AMZN) to $300, maintaining an Overweight rating on the stock. The move comes in the wake of strong quarterly financial results and strategic developments by the e-commerce and cloud computing giant.

Amazon reported robust financial performance for the second quarter of FY2025, exceeding market expectations and its own guidance across all segments. Revenue growth reached 10.87% over the last twelve months, underscoring Amazon's continued market dominance [1]. The company's market capitalization now stands at $2.36 trillion.

AWS showed mixed performance, with revenue slightly above expectations but profitability under pressure. This has raised investor concerns, particularly when compared to stronger cloud results from competitors. However, the company's third-quarter guidance came in well above revenue expectations but below profit forecasts, which Morgan Stanley interprets as prudent management positioning given heightened geopolitical uncertainty.

Morgan Stanley's revised financial forecasts reflect confidence in Amazon's ability to mitigate geopolitical risks and monetize continued logistics improvements. The firm also highlighted recent developments such as Amazon Web Services' agreement to provide U.S. government agencies with up to $1 billion in cloud discounts through 2028, and the general availability of Amazon Elastic (NYSE: ESTC) VMware Service, which facilitates cloud migration.

In the realm of partnerships, OpenAI's new models will be available on Amazon Web Services, as highlighted by BofA Securities, which has reiterated its Buy rating and $272.00 price target for Amazon. JMP Securities has also reiterated its Market Outperform rating and a $285.00 price target on Amazon stock, citing improved advertising efficiency during the Prime Day event [2].

These developments reflect Amazon's ongoing efforts to enhance its service offerings and maintain investor confidence. Despite mixed performance in AWS, the overall outlook remains positive, with analysts generally optimistic about Amazon's strategic expansion and growth potential.

References:
[1] https://uk.investing.com/news/analyst-ratings/freedom-broker-raises-amazon-stock-price-target-to-255-on-strong-q2-93CH-4213321
[2] https://za.investing.com/news/analyst-ratings/tko-group-stock-rises-as-bofa-raises-price-target-on-ufcparamount-deal-93CH-3833071