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Pro Analysis

Amazon's next trillion-dollar opportunity: Morgan Stanley

Amazon Fresh cooler bags
Brendan McDermid | Reuters

Investors should buy Amazon due to the rising growth potential of the massive grocery and clothing markets, according to Morgan Stanley, which reiterated its overweight rating on the internet e-commerce giant.

"We are often asked by investors which categories matter most to AMZN's forward growth. Our answer is Grocery and Clothing, given these categories combined make up over $1tn of annual consumer expenditure, or ~42% of AMZN's US addressable spend," Morgan Stanley's Brian Nowak wrote in a note to clients Monday.

"Our latest AlphaWise survey data speak to continued traction in these key categories."