Analysts at Morgan Stanley expect the rise in Amazon (AMZN) and its stocks to rise, even as the US stock market continues to slow down. The company’s analysts have recently cut down on Amazon’s revenue and estimates for cloud services growth, cutting AMZN stock price targets. Nevertheless, the company maintains its “overweight” rating of its stock, indicating that the company may quickly revise its new stock forecast and improve its improvements.
“With the size of AMZN, the benefits of buyers/sellers, logistics leadership and market structure, the company will be able to overcome challenges more than most retailers,” said an analyst led by Brian Nouerk. Morgan Stanley cut Amazon Web Services (AWS) growth forecasts for 2025 and 2026 by 1% and 2% respectively, and Amazon’s earnings per share forecasts down from 10% to 16% at $7.
In the US e-commerce industry, Morgan Stanley forecasts 6% growth in 2025 and 2026, compared to 7% estimates for both years. According to forecasts, Amazon’s market share should increase by 40% this year, and by 41% in 2026, from 39% in 2024.
Amazon (AMZN) has emerged as a top trader pick, and the market appears to be bounced back in the short term. While e-commerce juggernauts still lack a macroeconomic factor that keeps prices at bay, there is an attractive means of future profits for fledgling markets.
One of these top avenues is Amazon Web Services. According to Amazon CEO Andy Jassy, AWS has reached $100 billion in revenue, and the AI business boasts “triple digits” growth. In fact, the data shows that the company is strong in its most promising sector. “Generated AI reinvents almost every customer experience you know and enables a completely new customer experience about what we just fantasized about,” writes Jassy. What’s more, its AI efforts will only strengthen the AWS cloud computing business. That integration will give you a stronger market lead.
If we can continue to grow in these two sectors, things should look even brighter for e-commerce juggernauts. Certainly, if the market recovers, technology should return to winning ways. Furthermore, there may not be any stronger investments in that industry than Amazon.
