Large-cap tech stocks are rebounding from April lows due to easing tariff concerns. Amazon remains a top pick with a raised price target of $300 by Morgan Stanley. The firm cites a more stable macroeconomic outlook and accelerating momentum in Amazon Web Services as reasons for optimism.

Even though Amazon stock has rebounded, its performance is slow compared to the S&P 500. Valuation shows AMZN is relatively expensive with a high price-to-sales ratio but potentially undervalued based on its price/earnings-to-growth ratio. Morgan Stanley raised its EPS forecast for Amazon due to improved economic conditions.

Morgan Stanley’s optimism is driven by Amazon’s potential growth areas such as cloud and AI businesses. Amazon’s recent investments in AI infrastructure and partnerships show promising upside. AWS operating income in Q1 surged, contributing significantly to Amazon’s overall profit. The company’s Q2 results are highly anticipated for signs of resilience.

Analysts remain bullish on Amazon’s growth, with a consensus “Strong Buy” rating. The average price target is $249.85, indicating a potential 9% upside from the current price. Investors are looking to Amazon’s upcoming Q2 results for potential outperformance.

Read more at Yahoo Finance: Why This Analyst Says Amazon Stock Is Still His ‘Top Pick’