Morgan Stanley Sees Growth in Amazon’s (AMZN) Fresh Grocery Expansion, Keeps Overweight Rating

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Best NASDAQ Stocks to Buy For Long Term. On September 10, Morgan Stanley reaffirmed an Overweight rating for Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $300.

Morgan Stanley views Amazon.com, Inc.’s (NASDAQ:AMZN) move into the fresh grocery market, which is worth about $600 billion, as a catalyst for sustained faster growth.

Morgan Stanley Sees Growth in Amazon’s (AMZN) Fresh Grocery Expansion, Keeps Overweight Rating

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The research firm pointed out that for every 1% of market share that Amazon.com, Inc. (NASDAQ:AMZN) can capture, its US gross merchandise value will increase by about 120 basis points. Morgan Stanley also noted that the company has already built the required logistics network to support this expansion into the fresh grocery market.

Additionally, the firm highlighted that Amazon.com, Inc. (NASDAQ:AMZN) can benefit from higher fresh merchandise margins. The minimum $25 basket requirement would also make this move promising.

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company that operates an online retail platform and specializes in e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.