Amazon’s $500 Bull Case Puts AWS Under Massive Pressure

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN), the cloud-computing and retail giant, barely moved Tuesday morning, trading around $260.98 after Morgan Stanley painted a massive upside scenario for the stock. The firm sees Amazon reaching $335 in its base case, while a more aggressive bull case puts the shares at $500 a potential 92% jump from current levels.

The entire debate comes down to one question: how big can AWS become in the AI era? Amazon Web Services just delivered another powerful quarter, generating $42.2 billion in revenue, up 37% year over year. Total company sales climbed 20% to $200.6 billion, while operating income jumped 43% to $27.5 billion. Amazon is not slowing down either, with plans to spend roughly $220 billion in 2026 as it races to build the AI infrastructure customers will need.

The GF Value chart tells an…