Amazon tops Morgan Stanley's stock rating

Amazon is expected to release its third-quarter earnings report next week. Prior to data publishing, analysts at Credit Suisse, acting as financial conglomerate, downgraded the company's stock price target from $170 to $159. These actions reflect lower earnings estimates for Amazon stock for 2022/23.

However, experts note AMZN stocks are still the Top Pick for investors. Their bullish stance is reflected in a series of indications, including:

• Growing e-commerce operating margins;
• Increased free cash flow (FCF) over its advertising segment, progressing faster than expected;
• Rising trend in earnings outlook for AWS, Amazon's cloud platform, along with a moderate slowdown.

Thus, Amazon stocks are at their peak, according to Morgan Stanley. Analysts say they would potentially hike by 50% compared to the current level. So, experts are optimistic about the company followed by a thorough analysis by EBIT.