Buy Amazon on surging 60 million Prime subscribers, Morgan Stanley says

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Investors should buy Amazon shares as the e-commerce giant's Prime subscription business is growing rapidly and will drive better-than-expected earnings results, according to Morgan Stanley, which reiterated its overweight rating.

"AlphaWise [survey] shows continued strong Prime sub growth, now at 60mn members," analyst Brian Nowak wrote in a note to clients Wednesday.

"Amazon shares do not appropriately price Amazon's eCommerce business, which we see as the major driver of profit improvement near-term."