A Morgan Stanley note added about US$134 billion to Amazon in a day

Amazon rose 4.98% on Monday to US$262.45. For a company now worth US$2.83 trillion, that added about US$134 billion in a single session.

The push came from a bank. Morgan Stanley named Amazon its top pick on Monday. The bank pointed to the cloud business, Amazon Web Services, along with advertising and Prime memberships.

Amazon Web Services rents computing power to other businesses, including the companies training AI models. That makes it the part of Amazon most exposed to last week's argument about whether all the AI spending will pay off.

Chart: Amazon's value hits US$2.8 trillion on a broker's note. Two scales: operating income by calendar year, 2021 to 2025, on the left; market value at each year end and at Monday's close on the right, all in US$bn. — This story’s chart of the day: the numbers, the dark version and the animated version are on its own page. The chart’s page →

The shares had ground to make up. Amazon hit a record of about US$287 in August, and Monday's close still sits almost 9% below it.

Our take

a broker's note moves the share price and leaves the business where it was on Friday. Amazon reports on 29 October in New York, which is 10am Friday in Auckland and 8am in Sydney. I'd want to see how fast the cloud arm grew before reading much into Monday.

This story ran in The Dip Buyers Return Tuesday 20 October’s edition, with the market snapshot, the other two stories, the numbers and the week ahead. Read the whole edition →

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