Amazon Stock Jumps After Morgan Stanley Calls It 'Top GenAI Pick'

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Amazon Stock Jumps After Morgan Stanley Calls It ‘Top GenAI Pick’

Nauman Khan

Thu, February 19, 2026 at 2:57 AM GMT+9 1 min read

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AMZN

+2.59%

MS

+3.10%

This article first appeared on GuruFocus.

Shares of Amazon (NASDAQ:AMZN) rose about 2.5% Wednesday after Morgan Stanley reiterated the stock as its “Top Pick,” citing underappreciated growth potential in both Amazon Web Services and Retail.

The firm maintained an Overweight rating and set a $300 price target, highlighting Amazon’s positioning as a GenAI leader. Analysts noted the stock trades at roughly 19 times projected 2027 GAAP EPS, with around 20% forward EPS growth, representing a discount compared with peers.

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Morgan Stanley pointed to two main catalysts for potential upside. First, strong AWS demand and a healthy backlog could support over 30% growth, though expansion depends on ongoing investments in data centers. Second, Amazon’s Agentic Commerce initiatives, including its AI shopping assistant, Rufus, may enhance vertical leadership while building partnerships to strengthen horizontal market presence.

Analysts said the combination of cloud growth and AI-driven retail innovation makes Amazon a potentially underappreciated GenAI winner, with investor confidence likely to improve as results materialize.

The stock’s rise reflects optimism around Amazon’s AI integration and capacity to capitalize on emerging technology trends.

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