Wall Street Firm Names Amazon Its Top Pick With More Than 30% Upside. Is the Stock a Buy? – AOL

Key Points

• Morgan Stanley sees five potential catalysts that could left Amazon’s stock price.

• The company is seeing huge cloud computing growth, while its e-commerce operations are demonstrating great operating leverage.

Morgan Stanley recently tapped Amazon (NASDAQ: AMZN) as its “Top Pick,” placing a $350 price target on the stock. Analyst Brian Nowak called Amazon a “Rule of 90” company, meaning its annual revenue growth rate and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin could exceed 90%.The analyst said he sees five catalysts for the stock to climb higher.

First, Nowak sees Amazon’s cloud computing unit, Amazon Web Services (AWS), growing faster than previously expected. He now expects AWS to grow by 47% next year and 42% in 2028, after Nvidia noted that Amazon is expected to buy 2 million of its graphics processing units (GPUs) over the next two years. The analyst also predicted that Amazon will spend a whopping $355 billion in capital…