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

David Paul Morris | Bloomberg | Getty Images

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."

More In Pro News and Analysis

CNBC ProSantoli’s Friday market notes: Stocks snooze for now, but Fed meeting and rebalancing could shake things up
CNBC ProThese stocks could be big winners if interest rates continue to fall
CNBC ProPros are changing their portfolios due to the unexpected decline in rates. How they're playing it