Amazon Stock Expected to Surge 35% Amid Improved Macroeconomy and Strategic Partnerships

Amazon's stock is set for a 35% surge, according to Morgan Stanley's top analyst, Brian Nowak. He raised the price target by 20% to $300, citing an improving macroeconomic environment and a manageable tariff situation. Nowak is particularly bullish on Amazon Web Services (AWS) due to its rapid adoption and strategic partnerships. The stock currently holds a Strong Buy consensus rating with significant growth anticipated in the coming years.

Amazon's stock is poised for a significant surge, with Morgan Stanley's top analyst, Brian Nowak, raising the price target by 20% to $300 [1]. The upgrade reflects an improving macroeconomic environment and a more manageable tariff situation, according to Nowak. The analyst is particularly bullish on Amazon Web Services (AWS), citing its rapid adoption and strategic partnerships as key drivers of growth.

Nowak's updated forecast suggests a 35% upside from Thursday's closing price, as the stock has already surged more than 20% in the past three months, outperforming the S&P 500's gain of more than 17% in the same period [1]. The analyst has increased Amazon's earnings forecast by 9% for fiscal 2026 and by 6% for fiscal 2027. He also highlighted an acceleration in AWS due to lessening supply constraints and more gains in Anthropic, projecting its contributions to AWS growth to almost triple from its current estimated level of about 60 basis points or less [1].

The collaboration between Astronomer and AWS is expected to simplify migrations from on-premises or legacy systems to AWS cloud infrastructure, accelerate data workflow development, and enhance visibility and governance across data ecosystems [2]. This strategic collaboration agreement (SCA) will deepen integrations and create new capabilities that leverage elastic compute resources for dynamic workload scaling on AWS.

Most analysts are similarly bullish on Amazon, with 70 out of 73 of those covering it holding a strong buy or buy rating, according to LSEG [1]. The consensus target of roughly $245 also calls for more than 10% upside ahead.

Amazon's upgraded outlook could underpin further gains, as AWS is set to reaccelerate and e-commerce execution remains a focus. The stock currently holds a Strong Buy consensus rating with significant growth anticipated in the coming years [1].

References:
[1] https://www.cnbc.com/2025/07/11/lower-tariffs-can-help-amazon-rally-another-35percent-morgan-stanley-says.html
[2] https://www.marketscreener.com/quote/stock/AMAZON-COM-INC-12864605/news/Astronomer-and-Amazon-Web-Services-Announce-Strategic-Collaboration-Agreement-50483081/