Here’s how Amazon’s stock could nearly double by the end of next year, according to Morgan Stanley
Amazon is very far from its goal of achieving $1 trillion in cloud revenue, but it could deliver handsome returns for investors as it pursues that target, an analyst notes.
Amazon's stock has room to run, according to Morgan Stanley, with potential for nearly a doubling in value by the end of next year. This forecast is tied to the company's ambitious goal of reaching $1 trillion in cloud revenue. While Amazon is currently far from achieving this target, the analyst sees a clear path for growth.
The cloud segment is a crucial part of Amazon's business, and investors have been eagerly watching its progress. Amazon Web Services (AWS) has been a key driver of the company's revenue growth, but it still has significant work to do to reach its $1 trillion goal. Morgan Stanley's optimistic forecast suggests that the market is underestimating Amazon's potential for cloud growth, which could have a significant impact on the stock price.
To watch next: Amazon's quarterly earnings report, which will provide an update on the company's cloud revenue progress. Investors will be closely monitoring the report for any signs of acceleration in cloud growth, as well as management's commentary on the prospects for reaching the $1 trillion target. Additionally, keep an eye on the competitive landscape, as Microsoft and Google are also vying for market share in the cloud space.
Originally reported by marketwatch.com. BrokerNews adds analysis for finance & markets readers.