Morgan Stanley’s 5 Stock Picks for 2023

4. Amazon.com, Inc. (NASDAQ:AMZN)

Share Price Upside: 31%
Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) is one of Morgan Stanley’s top stock picks in the consumer cyclical sector as analysts remain bullish about its cloud services and prime membership. Headquartered in Seattle, Washington, it is best known for offering an e-commerce platform for connecting merchants and consumers. It also operates a cloud unit that offers various solutions, including computing storage and analytics.

Amazon.com, Inc. (NASDAQ:AMZN) is up by more than 40% for the year, benefiting from solid consumer spending power. Morgan Stanley has a $173.31 price target on the stock, implying a 31% upside potential. By June 2023, 278 hedge funds out of the 910 that Insider Monkey followed had invested in Amazon.com, Inc. (NASDAQ:AMZN)’s shares.

Here is what White Falcon Capital Management said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:

“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”

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