From Nasdaq: 2024-05-02 17:33:00

Amazon (NASDAQ: AMZN) posted strong Q1 financial results with a 13% revenue growth and significant profit increase due to cost controls. Morgan Stanley analyst raised price target to $220, projecting 23% upside. High profitability from inventory management and capital spending efficiency led to a net profit of $10.4 billion.

Amazon’s improved profits prompted Morgan Stanley to raise operating income and EPS estimates by 10%. The North American retail business is still unprofitable excluding advertising revenue, but further cost-saving and growth in Amazon Web Services are expected to drive profits. At $220, shares would trade at 27 times cash from operations per share.

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Read more at Nasdaq: 1 Wall Street Analyst Thinks Amazon Stock Is Going to $220. Is It a Buy?