Amazon's Long-Term AWS, Retail Opportunities Remain Intact, Morgan Stanley Says

11:14 AM EDT, 10/30/2026 (MT Newswires) -- Amazon.com (AMZN) retains substantial long-term growth opportunities in cloud computing and retail even as investor expectations for Amazon Web Services appear elevated, Morgan Stanley said Friday in a report. Morgan Stanley pointed to the high end of Amazon's Q4 revenue guidance, a record $578 billion AWS backlog and management's expectation that AWS revenue growth will exceed 40% in 2027 and 2028. Amazon plans to sell Trainium chips to third-party data centers beginning in 2027 and sees AWS revenue potentially reaching $1 trillion within five to 10 years, the report said. Morgan Stanley also highlighted improving retail efficiency. More than 400 million customers used Alexa for Shopping over the past year, up 60% from a year earlier, while customer interactions increased more than sixfold, the report said. Morgan Stanley lowered its price target on Amazon shares to $335 from $350 and maintained its overweight rating. Price: 238.89, Change: -4.91, Percent Change: -2.01