---
title: "Morgan Stanley expects strong future growth for Amazon's AWS business and raises next year's earnings per share estimate by 3%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275288642.md"
description: "Morgan Stanley expects strong future growth for Amazon's AWS business and improved efficiency in its retail operations, as the group continues to invest. Morgan Stanley raised its earnings per share forecast for 2027 by 3%, but lowered its target price from $315 to $300, maintaining an \"Overweight\" rating. Revenue forecasts for AWS over the next two years have been raised by 3% and 5%, with annual growth rates of 26% and 25%. It is expected that by 2027, revenues for AWS, Azure, and GCP will reach $202 billion, $161 billion, and $126 billion, respectively"
datetime: "2026-02-09T08:31:42.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275288642.md)
  - [en](https://longbridge.com/en/news/275288642.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275288642.md)
---

# Morgan Stanley expects strong future growth for Amazon's AWS business and raises next year's earnings per share estimate by 3%

Morgan Stanley's research report indicates that it believes Amazon's (AMZN.US) cloud computing business AWS is accelerating growth and will see even stronger growth in the future, with retail business efficiency continuing to improve, as the group is still investing (in AWS, retail business, low Earth orbit satellites); its past record shows excellent return on invested capital, leading Morgan Stanley to hold an optimistic view on this undervalued, multi-sector GenAI (generative artificial intelligence) winner.

Morgan Stanley has raised its earnings per share forecast for Amazon in 2027 by 3%; however, it has lowered the target price from $315 to $300, maintaining an "overweight" rating.

Morgan Stanley also believes that Amazon's investment output is driving performance, raising revenue forecasts for the AWS business by 3% and 5% for this year and next, respectively, with the current model predicting annual growth rates of 26% and 25%. Overall, current forecasts predict that AWS, Azure, and GCP revenues will reach $202 billion, $161 billion, and $126 billion by 2027, with compound annual growth rates of 23%, 36%, and 53% from 2024 to 2027

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