Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

5 Reasons Why Amazon Is Morgan Stanley’s Top Pick

Courtesy of Benzinga

5 Reasons Why Amazon Is Morgan Stanley's Top Pick

E-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) has won Morgan Stanley’s seal of approval in the face of a coronavirus pandemic threatening the economy. 

The Amazon Analyst

Analyst Brian Nowak maintained an Overweight rating on Amazon with a $2,400 price target.

The Amazon Thesis

Amazon’s share gains, improving one-day efficiency, rising mix of high-margin revenues and expectations of over 20% consensus earnings beats have made Morgan Stanley bullish on the company, Nowak said in a Sunday note. (See his track record here.)

Secondly, evidence suggests online grocery demand is surging, the analyst said. Morgan Stanley expects the ease and convenience of shopping online for groceries and consumables to lead to more long-term online grocery purchasing, he said. 

Amazon’s access to a growing database of the consumables that each household orders will help it to better curate and target people going forward and sustainably penetrate the $800-billion addressable U.S. grocery market, Nowak said. 

Thirdly, the near 25% drop in the price of oil will likely drive a $2 billion to $3 billion operating profit tailwind, as about $50 billion in estimated 2020 shipping costs for the company are related to fuel, the analyst said.

Amazon is a near-term, dark horse stay-at-home play, he said. 

The company’s AWS powers many leading consumer applications such as Walt Disney Co’s (NYSE: DIS) Disney+, Netflix Inc (NASDAQ: NFLX), Apple Inc. (NASDAQ: AAPL), Snap Inc (NYSE: SNAP) and other leading social video players, Nowak said.

These companies are likely to see ramping consumer use and compute/storage/AWS needs, which in turn is likely to benefit Amazon, the analyst said. 

This will lead to faster AWS adoption over the long term, he said. 

“The extent to which we are entering an economic downturn is likely to lead to faster long-term public cloud adoption as companies evaluate costs more closely and look for more efficient long-term business structures.”

The stock was down 2.46% at $1,741.15 at the time of publication Monday. 

Related Links:

Why This Analyst Recommends Buying Amazon, Baidu, Facebook And Uber Following COVID-19 Battering

Here’s How Long It Took Amazon To Reach A $100B Market Cap

Photo courtesy of Amazon. 

Latest Ratings for AMZN

Date Firm Action From To
Feb 2020 Aegis Capital Maintains Buy
Feb 2020 Citigroup Maintains Buy
Jan 2020 CFRA Maintains Buy

View More Analyst Ratings for AMZN


View the Latest Analyst Ratings


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!