GoKawiilAmazon shares fall 7% from August record as Morgan Stanley lifts price target to $350
Amazon stock hit an all-time high of $284 on Aug. 3 after a strong earnings report highlighted by CEO Andy Jassy's comments on the long usable life of AWS data center servers and the resulting free cash flow. Since then the shares have fallen more than 7%, even as Morgan Stanley added Amazon to its top picks list and raised its price target from $335 to $350, implying 33% upside from Monday's close.
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The swing shows investors are still working out how to value Amazon's heavy AI infrastructure spending against near-term cash flow, with Jassy's remarks on server economics seen as a key signal of long-term profitability. Morgan Stanley's bullish call suggests some on Wall Street believe the pullback is a buying opportunity rather than a sign of deeper weakness, though the stock's volatility indicates that view is not universally shared.
- Amazon stock hit a record $284 on Aug. 3 but has since fallen over 7%.
- CEO Andy Jassy's comments on server lifespan and AI-driven cash flow fueled the earlier rally.
- Morgan Stanley raised its price target to $350, implying 33% upside, and named Amazon a top pick.
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Published there as: “What Amazon must do to get its stumbling stock back to record highs and beyond”
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