Morgan Stanley Lifts Amazon Target to $350 Amid AWS Growth and Higher Capital Spending

Morgan Stanley raised its 12-month target for Amazon.com Inc. (AMZN) shares to $350, a move that comes as cloud revenue grows and higher companywide capital spending weighs on cash flow.

Morgan Stanley analyst Brian Nowak increased the target from $335 on Oct. 19. The new figure is 33.4% above Amazon’s $262.45 closing price that day. It is an estimate for the shares over 12 months, rather than a price they have reached.

The $350 target also exceeds the $330.49 average of 44 analyst targets recorded during the three months through Oct. 20. Of those analysts, 42 rated Amazon a buy and two rated it a hold; none gave it a sell rating. Their targets ranged from $230 to $400.

Nowak’s figure applies to Amazon shares, not to a trading contract tied to them. The top of the analyst range matches a previously covered $400 target from New Street Research.

Amazon Web Services (AWS) brought in $42.2 billion in sales for the quarter ended June 30, an increase of 37% from a year earlier. Its operating income rose to $16.6 billion from $10.2 billion. Across Amazon, quarterly sales climbed 20% to $200.6 billion.

Amazon President and CEO Andy Jassy described AWS as “booming” and put its second-quarter growth at 36.7%. The company’s segment results rounded the sales increase to 37%.

Amazon’s cash capital expenditures totaled $53.1 billion in the quarter, compared with $31.4 billion a year earlier. That spending total covers the company as a whole; it is not a measure of AWS operating expenses.

For the 12 months ended June 30, Amazon recorded a $7.6 billion free cash flow outflow, compared with an $18.2 billion inflow in the prior-year period. Amazon primarily linked the decline to increased purchases of property and equipment for artificial intelligence investment.

Amazon will hold its call on third-quarter 2026 results Oct. 29 at 5 p.m. ET (21:00 UTC).