Aug. 3 at 10:28 AM
$AMZN Morgan Stanley: Amazon.com Inc (AMZN)
• AWS remains centerpiece of our AMZN AI thesis — we model 35%/40%
revenue growth in '26/'27, which we view as arguably conservative given it implies only
$7/
$9 of incremental revenue per incremental watt, and we expect the AWS backlog to surge ~
$110BN Q/Q in 2Q to ~
$475BN on private lab deals, giving the market more confidence in multi-year growth durability. AMZN's Retail business is, in our view, an underappreciated GenAI winner — with improving algorithmic matching, a stronger ad business, and a call option for even stronger long-term unit economics via robotics — making AMZN one of the most compelling AI Adopter stories in our coverage