A “more manageable” tariff backdrop could lead to more growth for Amazon , according to Morgan Stanley. With trade tensions between the U.S. and China having eased, the firm hiked its price target on the e-commerce giant to $300 from $250 and reiterated its overweight rating. That updated forecast reflects about 35% upside from Thursday’s closing price. This comes as the stock has already surged more than 20% in the past three months, outperforming the S & P 500’s gain of more than 17% in the same period. In the past month, shares have also risen more than 4%. AMZN 3M mountain AMZN, 3-month Analyst Brian Nowak said that “the macro backdrop has significantly improved since mid-April,” when he lowered Amazon’s earnings estimates after the Trump administration confirmed that the new U.S. tariff rate on Chinese imports totaled 145% . Now that President Donald Trump has since announced 55% duties on China, the analyst said he’s “re-raising our estimates as we adjust for the more constructive macro landscape with lower tariffs.” Notably, Nowak has increased his Amazon’s earnings forecast by 9% for fiscal 2026 and by 6% for fiscal 2027. He also cited an acceleration in AWS due to lessening supply constraints and more gains in Anthropic specifically, seeing its contributions to AWS growth almost triple from its current estimated level of about 60 basis points or less. “Looking ahead, we model Anthropic to reach $10bn/$19bn of revenue in ’26/’27,” he wrote in a note. “If we assume the company is operating at 60% gross margins (ex-support costs), and 75% of these COGS are flowing through AWS, this implies Anthropic’s contribution to AWS is likely to expand to ~150bp+.” Most analysts are similarly bullish on Amazon, as 70 out of 73 of those covering it have a strong buy or buy rating, according to LSEG. Its consensus target of roughly $245 also calls for more than 10% upside ahead.
